SBI tumbled 10 per cent during the Budget week, decisively breaking out of its sideways trading range. This fall has altered the short-term trend from sideways to bearish as the stock has breached its key support as well as 50-day moving average. It is now hovering well below its 21- and 50-day moving averages. There is an increase in daily volumes over the past four sessions, strengthening the stock’s decline. Investors with a medium-term perspective can consider taking profits off the table at this juncture and re-enter when the dust settles. The relative strength index in the daily chart has entered the bearish zone from the neutral region reinforcing the downtrend. The weekly RSI has entered the neutral region from the bullish zone. Traders can initiate fresh short position with a stop-loss at ₹2470. Targets are ₹2300 and ₹2250 levels. Key resistances to watch are at ₹2500 and ₹2580.

ITC (₹346)

ITC held strong and advanced 3.8 per cent last week, when bellwether indices witnessed a jerk. It clearly breached its immediate resistance and 200-day moving average around ₹330, altering the stock’s short-term downtrend. The indicators in the daily chart have entered the bullish zone backing the uptrend. The stock is hovering well above its 50- and 200-day moving averages. Both investors with short- as well as medium-term perspective can consider buying the stock in declines with a stop-loss at ₹330. The stock can extend its up move to ₹355 and ₹365 in the short-term. Strong rally above ₹365 will pave way for an up move to ₹375 and eventually to ₹385 in the medium-term. But, a decisive fall below ₹330 will mar this outlook and drag the stock down to ₹315 and then to ₹300 in the medium-term.

Infosys (₹3,325.8)

Infosys witnessed a subdued reaction after its mixed Q1 results, but managed to gain 2.7 per cent last week. Nevertheless, the stock is testing a key resistance at ₹3,350 where its 200-day moving average is poised. The relative strength index in the daily chart is on the brink of entering the bullish zone from the neutral region. Whereas other indicators in the daily chart are hovering in the positive terrain, backing the stock’s up move. A decisive breakthrough of ₹3,350 will alter the short-term downtrend and take the stock northwards to ₹3,450 and ₹3,550 levels. Traders with a short-term perspective can consider buying the stock in declines with a stop-loss placed at ₹3,250. Investors with a medium-term perspective can also consider buying the stock with a stop-loss at ₹3,150. Important supports for the coming week are pegged at ₹3,150, ₹3,050 and ₹2,900

RIL (₹967)

RIL tumbled 6 per cent last week with good volumes breaching a significant base at ₹1,000. Short-term trend for the stock has been down from its 52-week high of ₹1,142.5 marked in early May 2014. Indicators and oscillators in the daily chart are featuring in the bearish zone supporting the downtrend. Those indicators in the weekly chart have signalled a sell and are trending downwards. The stock is trading well below its 21- and 50-day moving averages. Trader with a short-term horizon can sell the stock with a stop-loss at ₹1,000. The stock can decline to ₹950 and then to ₹920 in the forthcoming weeks. Moreover, investors with a medium-term perspective holding the stock can consider exiting it and wait on the sidelines. Key support below ₹920 is placed at ₹900. On the upside, the stock has significant resistance at ₹1,000 and then between ₹1,050 and ₹1,060.

Tata Steel (₹500.9)

The stock plunged 6.6 per cent accompanied by good volumes last week. After trading in a sideways consolidation range, the stock conclusively broke its key support at ₹520. But, the stock is now its testing next support at ₹500 with a negative bias. Traders can make use of rallies to take short positions in the stock while maintaining a stop-loss at ₹515 levels. The indicators and oscillators in the daily chart are on the verge of entering the bearish zone. An emphatic slump below ₹500 can drag the stock down to ₹480 or even to ₹460 in the ensuing trading sessions. Next important support is in the band between ₹430 and ₹440. A decisive fall below ₹430 and ₹440 band will mar the stock’s medium-term uptrend and pull it own to ₹400. Investors with a medium-term perspective can consider booking profits now and re-enter later. Important resistances are placed at ₹520 and then at ₹550 levels.

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