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Tata Steel retains its range-bound move (₹419.7)

Tata Steel gained momentum last week. It surged over 7 per cent breaking above the 100-day moving average resistance which restricted the upside a week earlier. The ₹370-₹440 range remains intact and the stock is now headed towards the upper end of this range. Inability to break above ₹440 may trigger a pull-back move towards ₹400 or even to ₹370 — the lower end of the current range. But a decisive break above ₹440 may boost the bullish momentum. Such a break can take the stock higher to ₹485 and ₹490 initially. This move can be swift as the stock has been in a prolonged sideways consolidation move since October 2016. Such a rally will also increase the likelihood of the stock targeting the long-term resistance levels of ₹534-₹540 thereafter. Medium-term investors can hold the longs and retain the stop-loss at ₹340. Revise the stop-loss higher to ₹360 as soon as the stock moves up to ₹470. On the other hand, if Tata Steel breaks below ₹370, which is less probable, it can fall to ₹350.

RIL may test its near-term supports

The uptend in RIL halted last week. The stock fell sharply after making an intra-week high of ₹1,097. However, the broader picture remains bullish. Immediate support is at ₹1,068 and then key near-term supports are at ₹1063 and ₹1060 -the 21-day moving average support. Though these supports can be tested this week, a decisive fall below ₹1,060 looks less probable. Also the downside is expected to be limited to the support at ₹1,045 even if the stock declines below ₹1,060. The price action on the daily chart suggests that the stock is more likely to sustain above ₹1,060 in the near-term. A reversal from ₹1,060 may take RIL higher to ₹1,100 or ₹1,120 initially. Further break above ₹1,120 will see the rally extending to ₹1,160. Medium-term investors can hold the long positions and retain the stop-loss at ₹1,010. Low risk appetite investors can book partial profits at ₹1,140. The short-term outlook will turn negative on a strong break below ₹1,045. Such a break will increase the likelihood of the stock revisiting ₹1,000 levels .

Infosys struggles to breach barrier (₹971.45)

Infosys has been struggling to gain momentum over the past five consecutive weeks to move decisively above the psychological ₹1,000 mark. The stock tumbled 3.9 per cent last week. Though the weekly chart suggests for a range bound movement, the daily charts are painting a bearish picture as the 100-day moving average has been capping the upside in the stock for more than a month. The daily chart signals a possible revisit to ₹900 in the coming days. It also suggests that the strong downtrend that has been in place since June 2016 is still intact. However, the 200-week moving average at ₹959 will be a crucial support level to watch . If Infosys manages to sustain above this support, it can move higher but stay range bound between ₹959 and ₹1,020 for some time. A strong break below ₹959, though, which looks highly possible, can drag the stock lower to ₹900 once again. The price action in the coming weeks will be crucial as it would give a clear signal on whether Infosys is headed towards its long-term support at ₹800 or not.

Supports to limit the downside in ITC (₹242.6)

ITC surged over 3 per cent intra-week. But the sharp fall on Friday wiped off all the gains. The weekly candle reflects indecisiveness. But the daily chart suggests that a fall to ₹240 is possible although an immediate support is available at ₹242. If the downmove extends below ₹240, the fall could be limited to ₹237-₹235, as a key trendline and a cluster of moving average supports are available around this region. The outlook would turn negative and the stock could fall to ₹230 and ₹225 only if the stock breaks below ₹235 decisively. But such a fall looks less probable . As such, a subsequent reversal from ₹240 or from the ₹237-₹235 support zone can take ITC higher to ₹245 or even ₹250. Short-term traders with high risk appetite can wait for dips and go long at ₹238 with a stop-loss at ₹232 for the target of ₹250. Revise the stop-loss higher to ₹240 as soon as the stock moves up to ₹246. A key trendline resistance is at ₹252 which needs to be breached decisively, to confirm that the outlook has turned bullish.

SBI can dip before further rise (₹245.95)

SBI is not gaining momentum to bounce back strongly. Though the weekly candle chart suggests a range-bound move between ₹241 and ₹253, the daily chart indicates another possible leg of downmove in the short term. Cluster of resistances are poised between ₹253 and ₹257, which may cap the upside in the near term. Immediate support is at ₹239. A break below it can take the stock lower to ₹235 – a trend line as well as the 38.2 per cent Fibonacci retracement support. An immediate break below ₹235 is less probable. Also the downside could be limited to ₹230-₹229 even if the stock declines below ₹235. A subsequent reversal from ₹235 can take SBI higher to the ₹255-₹260 resistance region. A strong break above ₹260 is needed for the stock to gain fresh momentum. Such a break can target ₹270 initially and ₹290 thereafter. Medium-term investors can hold the long positions and accumulate on dips near ₹235. Retain the stop-loss at ₹220 and revise it higher to ₹230 as soon as the stock moves up to ₹295.

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