The stock gained 5 per cent taking support from the key base zone between Rs 800 and Rs 810 in the week ago. However, the short-term trend will remain bearish as long as the stock trades below Rs 880 levels. Short-term traders with a greater penchant for risk can buy the stock with stop-loss at Rs 838 and exit at Rs 880 in the upcoming week. We reaffirm that a strong breakthrough of key resistance at Rs 880 will alter the stock’s downtrend and take it higher to Rs 900 and to Rs 940 in the medium-term. Important supports are positioned at Rs 830 and Rs 800 and Rs 810 band.
Medium-term trend continues to be up for the stock. Investors with a medium-term perspective can consider buying the stock on dips while maintaining stop-loss at Rs 795.
State Bank of India (Rs 2,204.1)
SBI reversed upwards from its key medium-term trend-deciding level at Rs 2,075 last week. Although the stock has gained 5.5 per cent in the previous week, it is currently testing important resistance band between Rs 2,200 and Rs 2,230.
Short-term traders should tread with caution as long as the stock trades below Rs 2,230. Fresh long position is recommended with fixed stop-loss at Rs 2,190 only if the stock makes a remarkable breakthrough of the aforesaid resistance zone. Upside targets are Rs 2,300 and Rs 2,350.
Key support is at Rs 2,075, strong downward breakthrough of which will pave the way for a decline to Rs 2,000 or to Rs 1,900 levels in the medium-term.
Infosys (Rs 2,970.2)
The stock advanced 2 per cent last week and is testing key long-term resistance at Rs 3,000. Medium as well as short-term traders can consider taking partial profits off the table at this juncture. The stock’s weekly indicators are hovering in the overbought levels indicating a corrective decline in the stock price. Moreover, daily indicators are trending downwards displaying a negative divergence implying that a potential trend reversal is on the cards.
Medium as well as short-term trends are currently up for the stock. Investors with medium-term timeframe can consider holding the stock with stop-loss at Rs 2,500 levels. A decisive up move above Rs 3,000 can push the stock higher to Rs 3,100 and then to Rs 3,200 in the medium-term. Key support for the week ahead are at Rs 2,900 and Rs 2,814.
Tata Steel (Rs 358.5)
After testing its important long-term support band between Rs 335 and Rs 340, the stock bounced up gaining 5 per cent in the week ago. However, it is premature to buy the stock as medium-term trend is still down and the stock is facing key hurdles at Rs 365 and Rs 380. Therefore, short-term traders should tread with caution in the ensuing week.
Strong weekly close above Rs 390 is required to reverse the stock’s downtrend and take the stock higher to Rs 406 or Rs 420 in the medium-term. Key supports to note are at Rs 349 and Rs 335-340 band.