SBI (₹311.3)

The stock of SBI slipped about 2 per cent last week and now tests an immediate support at ₹305 levels. A fall below this level will drag the stock down to ₹300 and then to ₹290 in the short term. The indicators in the daily chart have entered the neutral region from the bullish zone, implying weakness. Traders with a short-term view can sell the stock on such a decline with a stop-loss at ₹310. The medium-term trend remains bullish as long as the stock trades above the significant support level of ₹250. Investors with a medium-term perspective can hold the stock with a stop-loss at ₹285. Breach of ₹322 levels can take the stock northward to ₹330 and ₹338 levels. If the stock holds above ₹250, it has the potential to touch ₹350. Key supports for the stock below ₹290 are at ₹280 and ₹270.

ITC (₹395.6)

The stock extended its rally by gaining over 1 per cent last week. Both the short and medium-term trends are bullish. The stock hovers well above its 20- and 50-day moving averages. Further, the stock’s indicators and oscillators in the daily as well as weekly chart continue to feature in the bullish zone signalling upward momentum. We reiterate that traders with a short-term perspective can buy the stock with a stop-loss at ₹380. The stock now tests immediate resistance at ₹400. A break of this level can push the stock northwards to ₹410. Investors with a medium-term view can hold it with a stop-loss at ₹350. Only a strong tumble below ₹350 will have bearish implications and pull it lower to ₹340 and ₹330 in the medium term. Short-term supports are at ₹380, ₹371 and ₹360 levels.

Infosys (₹1939.1)

Last week, the stock plunged another 6 per cent, in line with our expectations. After the formation of a bearish engulfing candlestick pattern on the weekly chart, the stock has formed a long back candle, confirming the trend reversal. Short-term trend has been down from the December 1 peak of ₹2,200 levels. The stock hovers well below its 21- and 50-day moving averages. Traders with a short-term outlook can sell the stock on rallies with a stop-loss at ₹2,000. Initial target is ₹1,900, and subsequent ones are in the support zone between ₹1,800 and ₹1,825 levels. An emphatic breakthrough of the ₹1,800 will alter the medium-term uptrend and pull the stock down to ₹1,700 and ₹1,600 in the ensuing weeks. Significant resistances above ₹2,000 are at the levels of ₹2,100 and ₹2,200.

RIL (₹883.5)

RIL tumbled 7.7 per cent, breaching key supports at ₹920 and ₹900 levels in the prior week. This fall has strengthened both the short and medium-term downtrend. The stock trades well below its 50- and 200-day moving averages. The indicators and oscillator in both daily and weekly chart feature in the bearish zone, backing the downtrend. Traders with a near-term view can sell the stock with a stop-loss at ₹905. Continuation of the downtrend can pull the stock down to ₹865 and then to ₹850 in the short term. In the medium term, the stock can find base in the band between ₹840 and ₹850 levels. A further fall below this zone will drag the stock down to ₹820 and ₹800 levels. However, a decisive rally above ₹905 can take the stock higher to ₹920. Next key resistances are pegged at ₹950 and ₹970 levels.

Tata Steel (₹403.4)

The stock of Tata Steel plummeted 12.5 per cent, accompanied by good volumes, last week. Both short and medium-term trends are down for the stock. It hovers well below its moving average compression (21-, 50- and 200-day moving averages). Nevertheless, the stock currently tests a key support at ₹400. As the indicators in the daily chart feature in the bearish zone, a corrective rally is possible if the stock rebounds from ₹400. The stock can experience a corrective up move to ₹410 or ₹420. Hence, traders with a short-term perspective should tread with caution in the coming week. Significant resistances to note are placed at ₹420 and ₹440 levels. A conclusive fall below ₹400 can pull the stock down to ₹380 and then to ₹360 levels.

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