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The stock finished the week on a negative note declining marginally by Rs 5.8.
Traders can initiate short position while maintaining the stop loss at Rs 1030 levels. The initial target is Rs 990 and then Rs 970.
Conversely, a surge above Rs 1055 will be a threat to the short-term bearish outlook. In that case, a rally to Rs 1076 and then to 1090 could be possible.
Medium-term trend is a sideways consolidation in the broad range between Rs 880 and Rs 1160. Only a strong weekly close below Rs 956 can drag it lower to Rs 920 or Rs 880.
State Bank of India (Rs 2,803.3)
SBI advanced Rs 24 in the previous week and is now testing its 200-day moving average.
Short-term traders can consider initiating fresh short position with stop-loss at Rs 2850 levels. Downward targets are Rs 2750 and Rs 2700.
Key supports below Rs 2700 are at Rs 2,650 and Rs 2,565 However, move above Rs 2850 will change the view and take the stock higher to Rs 2900 and then to Rs 300 levels.
The stock continues to be in a medium-term downtrend from its last November peak of Rs 3515. An emphatic move above Rs 3000 will alleviate the bearish stance, post which a medium-term rally to Rs 3150 is possible.
Tata Steel (Rs 630.3)
The stock was choppy and ended the week in the same levels, forming a doji candlestick in weekly chart. This indicates a neutral stance. The stock is currently facing a significant resistance at Rs 640. Fresh short position can be initiated, only if the stock fails to move above this resistance, with stop at Rs 640. Targets are Rs 615 and Rs 600.
However, we reiterate that a jump above Rs 645 can push Tata Steel to Rs 660. Break through of resistance at Rs 660 will put an end to the medium-term downtrend and will make way for a rally to Rs 680 or Rs 700 in the ensuing weeks.
Infosys Technologies (Rs 2,988.8)
Infosys nosedived 9.6 per cent with extra-ordinary volumes on Friday, following its disappointing fourth quarter results. It finished the week with loss of 7.4 per cent.
With this plunge, it has conclusively penetrated its significant intermediate-term support at Rs 3050 and its 200-day moving average at Rs 3041. At present, the stock is poised above an important support band between Rs 2950 and Rs 2966.
Reversal from this support band will signal a near-term pull back rally to Rs 3050. Short-term traders should avoid trading in the stock. Key resistances for the upcoming week are at Rs 3100 and Rs 3200.
The stock failed to move above the key resistance level of Rs 3300 and resumed its medium-term downtrend that has been in place since the January-11 peak.
A fall below Rs 2900 will strengthen the downtrend and pull the stock down to Rs 2800 or 2750 in the medium-term.
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