The stock of SBI fell 2 per cent last week after breaching its key immediate resistance band between ₹2,580 and ₹2,600 conclusively, a week before. Traders with a short-term perspective need to tread with caution, as the stock continues to test this resistance zone. The indicators on the daily and weekly chart have moved back into the neutral region from the bullish zone, implying bearish trend. However, to confirm the downtrend, the stock needs to fall below the immediate key support at ₹2,500. Traders can go short with a stop-loss at ₹2,500. The targets are at ₹2,400 and ₹2,350. But a decisive rally above ₹2,600 can reinforce bullish momentum and take the stock higher to ₹2,750 and ₹2,850 in the medium term. Investors with a medium-term outlook also need to be cautious.

ITC (₹359.4)

The stock advanced 1 per cent last week and is testing the upper boundary (₹360) of the sideways consolidation phase that has been in place since late July. The near-term outlook is positive. The stock is poised for an upward break-out of ₹360. Traders can buy the stock with a stop-loss at ₹353. A conclusive rally above ₹360 can take the stock higher to ₹365, ₹375 and ₹386 in the short- to medium-term. But failure to move past ₹360 can keep the stock trading sideways in the wide band between ₹345 and ₹360. A strong decline below ₹340 will mitigate the stock’s medium-term uptrend that has been in place from the June low of ₹312 levels. Subsequent supports below ₹345 are pegged at ₹335 and ₹330. Investors with a medium-term horizon can buy the stock with a stop-loss at ₹345 levels.

Infosys (₹3,701.4)

The movement in Infosys has been volatile and the stock is facing important resistance in the ₹3,800-₹3,850 range. Near-term trend is sideways within a band of ₹3650 and ₹3800. The moving average convergence divergence indicator is displaying negative divergence, implying trend reversal. Investors with a medium-term perspective can book profits now and wait on the sidelines. Short-term traders should tread with caution and initiate fresh short position on a fall below ₹3,650 levels with a stop-loss at ₹3,700. The stock can fall to ₹3,550 and ₹3,450 levels in the coming week. To confirm the short-term downtrend, the stock needs to decline below ₹3,450 levels. Next supports are at ₹3,350 and ₹3,200. Key resistances for the stock above ₹3,850 are at ₹3,900 and ₹4,000 levels.

RIL (₹994.6)

Reliance Industries fell marginally by 2 per cent last week, breaching its key support level at ₹1,000. The stock has closed below its 21- and 50-day moving averages. The medium-term downtrend that started from the May 2014 peak of ₹1,142 remains intact. The indicators on the daily chart are trending down with negative bias. Traders can sell the stock on rallies with a stop-loss at ₹1,010. Near-term targets are ₹973 and ₹960. However, the key support at ₹960 can provide a temporary base for the stock. A decisive fall below this level will reinforce bearish momentum and drag the stock down to ₹920 and ₹900 levels. On the upside, significant resistance in the zone between ₹1,050 and ₹1,060 needs to be broken for a medium term rally to ₹1,100 and ₹1,142 levels.

Tata Steel (₹510.4)

Tata Steel plunged to ₹493 in the beginning of last week. But the stock bounced back from ₹490 levels, recouping most if its loss, by the end of the week. However, the short-term trend for the stock is down and will continue to be in place as long as it trades below ₹540. The stock is trading well below its 21- and 50-day moving averages. The daily volumes are declining over the past three trading sessions. Traders can consider selling the stock on rallies with a stop-loss at ₹530. Tata Steel can resume its downtrend and decline to ₹500 and then to ₹490 once again in the short term. Also, a strong decline below ₹500 can strengthen the downtrend and pull the stock down to ₹476 and ₹450 in the medium term. Resistances are at ₹530 and ₹550.

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