5440/5450 remains a good support for NIfty. If this support zone is broken then expect levels of 5400/5380/5350. Keep stoploss to all your trading positions.

  

Stock View: Reliance Infra


This is a 18-month chart of RelInfra and on the face of it stock is looking weak, but there are many points to discuss about:
1) Important Trendline: This trendline is a major trend decider for the stock. Above this trendline the stock is a buy on dips and it is transformed into sell on rise below this trendline. Right now its trading below Important trendline ( Bearish Signal 1 )
2) The stock is trading below its all short term as well as long term moving averages. This convergence (almost)---> 1080-1100 will act as a resistance for the stock. ( Bearish Signal 2)
3) The stock has multiple bottoms around 945-950 zone and ideally stock should atleast give a bounce back from these levels. But if stock breaks/closes below 945-950 zone on sustained/weekly closing basis then expect levels of 840, if broken then,730/640 ( long term support). If it breaks 945-950 then it wud be Bearish Signal 3.
4) RSI (oversold -below 30) is placed at good trendline support and may bounce back from multiple bottom support zone of 950. but if 950 is broken you can expect a sharp fall in RSI as it did in Nov 2009.
945-950 level is a good short term support zone for the stock, the stock can be bought near 970-980 with a strict stoploss of 950 on a sustained/ weekly closing basis and you may get to see levels of 1050/1100 levels. And if it does break 950 then the stock should be bought by investors in a staggered manner only at major support levels of 840/730/640.

Have a nice trading day

Regards

Ankit