The stock was choppy and ended almost at the same level as the week before. It is reversing higher from a key support around Rs 670.

It will face resistance at Rs 746 in the ensuing week. A strong penetration of this resistance will push the stock higher to Rs 770 and to Rs 792 in the forthcoming weeks.

Short-term traders should stay watchful as long as the stock trade below Rs 746 and initiate fresh long position on a strong move above this level.

On the other hand, fall below Rs 670 will pull the stock down to Rs 557, Rs 532 and Rs 512 in the medium-term.

As long as the stock trades below Rs 790, we continue with the stance that its medium-term trend remains down.

Infosys (Rs 2,520)

Infosys advanced 4 per cent in the previous week and is now facing key short-term resistance band between Rs 2,540 and Rs 2,560.

Traders with short-term perspective can initiate fresh long position only if the stock manages to rally above Rs 2,560 with stop at Rs 2,500. Targets are Rs 2,650 and Rs 2,700. Next important resistance is at Rs 2,740.

However, failure to rally above Rs 2,560 will pull the stock down to Rs 2,420 and Rs 2,300 in the short-term.

Investors with medium-term perspective can accumulate the stock with stop-loss at Rs 2,200.

The stock's significant long-term support between Rs 2,200 and Rs 2,300 is providing cushion for the stock. But, a tumble below Rs 2,200 will pull the stock down to Rs 2,000.

State Bank of India (Rs 2,182.8)

The stock vacillated between an intra-week high of Rs 2,241 and low of Rs 2,134 and formed a spinning top candlestick pattern signalling indecisiveness in the weekly chart. Short-term traders should tread with caution in this stock.

It has been on a short-term uptrend from the low at Rs 1,804.

A conclusive breakthrough of its immediate resistance at Rs 2,225 will accelerate the stock higher to Rs 2,475 in the medium-term. Short-term targets are Rs 2,300 and Rs 2,374.

The stock has key support at Rs s 2,044 and Rs 1,956. A decline below Rs 2,044 can pull the stock down to Rs 1,956 or Rs 1,900.

The stock is forming a medium-term uptrend from the December 2011 trough at Rs 1,576.

An emphatic move above Rs 2,475 will lift the stock northwards to Rs 2,552 and Rs 2,780 in the medium-term.

Tata Steel (Rs 413.4)

The stock was volatile last week and closed marginally on a positive note.

However, the stock still continues to be moving sideways in a very narrow band between Rs 392 and Rs 420 since mid May 2012. Medium-term continues to be down.

A strong rally above Rs 440 is required to alter this downtrend and pave way for a medium-term up move to Rs 470.

The stock has key resistance at Rs 430 and Rs 440 in the ensuing weeks.

Key supports are at Rs 400 and Rs 389. A decisive breach of Rs 389 will drag the stock lower to the next key support level at Rs 334.

(This article was published on June 16, 2012)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.