The stock continued testing the Rs 1,055 level last week and failed to move beyond this. Falling by one per cent, the stock a formed a bearish engulfing candlestick pattern in the weekly chart signalling a short-term trend reversal. We go with the prior view that short-term traders should tread with cautiousness and initiate fresh short positions only if the stock declines below Rs 1,015 levels. Downwards targets are Rs 990 and Rs 956. On the other hand, a reversal from the current levels and strong move above Rs 1,055 will mitigate the bearish view. The stock can move higher to Rs 1,076 and then to Rs 1,090.

Over the medium-term, the stock is expected to consolidate sideways in the wider range between Rs 880 and Rs 1,160. A strong dive below Rs 956 can pull it down to Rs 920 or Rs 880 in the medium-term.

State Bank of India (Rs 2,779)

Last week, SBI moved higher contrary to expectations and gained 2 per cent. However, the volume accompanying this move was low. A decline in daily volumes over the past five trading sessions implies weakness in the current up move. The stock is currently testing the 200-day moving average around Rs 2,800. Short-term traders can consider initiating fresh short positions if the stock slips below Rs 2,740 with an initial target of Rs 2,693 and then Rs 2,650 or Rs 2,565. Nevertheless, a strong move above Rs 2,865 will mar the bearish stance and lift the stock higher to Rs 2,950 or to Rs 3,000 in the short-term.

However, the medium-term trend points downwards for the stock since its November 2010 peak. As long as the stock hovers below Rs 3,000, this downtrend will remain in place. But a strong close above this level will mitigate the trend.

Tata Steel (Rs 629.7)

Tata Steel increased by Rs 4 in the previous week, with low volumes once again, signalling caution in the near-term. The stock is reversing from the key resistance at Rs 640. Traders can initiate short position with stop-loss at Rs 640. The stock can decline to Rs 610 and then to Rs 600 in the days ahead. Subsequent supports are pegged at Rs 592 and Rs 575 levels.

Conversely, an emphatic rally beyond Rs 645 can lift the stock higher to Rs 660. As long as this resistance level is not breached, the medium-term down trend stays in place.

Infosys Technologies (Rs 3,226.9)

After gaining 2 per cent on Monday, the stock encountered resistance around Rs 3,300 and gave up those gains in the subsequent trading sessions. The stock formed a dragon fly doji candlestick in the weekly chart signalling bearishness. However, it is hovering above a key support level of Rs 3,200. Reversal from this level can lift the stock higher and consolidate between Rs 3,200 and Rs 3,300 band.

Fresh long position is advisable only on a strong move beyond Rs 3,300 levels. Targets are Rs 3,350 or Rs 3,400 and then Rs 3,450 in the ensuing weeks. However, a fall below its immediate support will extend the stock's decline to Rs 3,150 or Rs 3,100 in the near-term.

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