SBI (₹289.4)

SBI reversed sharply lower last week after making a high of ₹298.65 and fell over 2 per cent in the last two trading days. A key near-term support is at ₹287, which can be tested initially this week. The stock may come under a short-term pressure if it falls below this support level. The ensuing targets on such a fall will be ₹280 and ₹277. But if SBI manages to sustain above ₹287, it can rise to revisit the psychological ₹300 mark. Thus, the possibility of the stock breaching above ₹300 subsequently will remain high. Such a break will increase the likelihood of the stock rallying to our target of ₹327. As being reiterated in this column over the last few weeks, the region between ₹327 and ₹330 is a key long-term trend resistance for SBI. Whether the stock manages to rise past this hurdle or not will be deciding the next trend. Investors can hold the long positions with the stop-loss at ₹230. Revise the stop-loss higher to ₹260 as soon as the stock moves up to ₹315. Book partial profit, of about 25 per cent of your holdings at ₹325.

ITC (₹272.75)

After two weeks of a mixed movement, ITC fell sharply by 2.7 per cent last week breaking below a key support at ₹275. Next important support is near the current levels at ₹270. If ITC declines below this support, though this looks less probable from the charts, it may increase the downside pressure. In such a scenario, the stock can then fall to ₹265 or ₹264. But if ITC manages to reverse higher from ₹270, the downside pressure may ease. A rise to ₹280 and ₹285 can be seen thereafter. A strong break and a daily close above ₹285 is needed for the stock to gain fresh momentum. Such a break will open doors for a fresh rally to ₹300 — a crucial long-term resistance level. Inability to breach above ₹300 can trigger a pull-back move to ₹290 or ₹285. On the other hand, if ITC breaches above ₹300 decisively, it can extend its upmove to ₹340. The outlook will turn negative only if ITC closes decisively below ₹264. The next targets below ₹264 are ₹255 and ₹250. Such a fall will increase the threat of the stock falling to ₹240 levels over the medium term.

Infosys (₹981.25)

The five-week-long narrow consolidation above ₹1,000 ended last week. Infosys tumbled 3.9 per cent breaking below the psychological ₹1,000 mark. The sharp fall , signals that the broader ₹900-₹1,045 sideways range that has been in place over the last five months is intact. Inability to bounce above ₹1,000 from the current levels can drag the stock down to ₹950 or even ₹900 . A reversal from ₹900 will see the stock rising back to ₹1,000 . But if Infosys breaks below ₹900 decisively, it can fall to ₹850 or even ₹800. Series of key supports like a trendline, Fibonacci retracement and the 100-week moving average are poised in between ₹850 and ₹800. So a break below ₹800 looks unlikely at this juncture. A strong reversal from ₹800 may take the stock higher to ₹1,000 levels once again. Investors can hold the long positions. The sideways move may prolong for a while or the stock may fall to ₹850 or ₹800, before a fresh leg of rally begins. long term investors can accumulate on dips near ₹950 and ₹900.

RIL (₹1,405.5)

RIL skyrocketed 9.8 per cent intraweek to record a high of ₹1,448.5. But the stock gave back some of the gains on Friday and closed 6.5 per cent higher for the week. The decisive weekly close above ₹1,350 is a positive. This clears the way for the next targets of ₹1,460 and ₹1,485. The level of ₹1,350 will now act as a strong support. Every dip to this level will find fresh buyers coming into the market. Inability to break above ₹1,485 may trigger a pull-back move to ₹1,400 or even lower levels. But a strong break above ₹1,485 will open doors for the next targets of ₹1,550 and ₹1,600. Investors can hold the long positions with a revised stop-loss at ₹1,185. Move the stop-loss higher to ₹1,320 as soon as the stock moves up to ₹1,550. On the monthly chart, the price action between 2009 and 2016 reflects a triangle pattern. The surge that happened from the beginning of this year has broken above this pattern. So, if this pattern plays out well, one should not be surprised to see RIL at ₹1,800 and ₹1,850.

Tata Steel (₹492.9)

Tata Steel is still struggling to break above ₹500. The stock made an intraweek high of ₹505.8 and has come-off from there to close below ₹500 for the week. Key support is inbetween ₹477 and ₹475, which can be tested if the stock declines below ₹486. A reversal from ₹475 can take the stock up towards the ₹505-₹510 resistance zone. A breakout on either side of ₹475 or ₹510 will decide the next leg of move. Until then, it will continue to remain range-bound between ₹475 and ₹510 for some more time. Our bias remains bullish and a breakout above ₹510 is expected. Such a break can take the stock higher to ₹535 or ₹545 which is a key long-term resistance zone. Investors can hold the long positions with the stop-loss at ₹410. Revise the stop-loss higher to ₹460 as soon as the stock moves up to ₹520. Book partial profits at ₹530, on around 30 per cent of your holdings. The stock may come under a pressure if it breaks below ₹475 on the downside. This can take the stock lower to ₹455.

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