Resistance caps the upside in ITC (₹279.75)

ITC reversed sharply higher last week by 2.5 per cent and recovered almost all the loss made in the week earlier. But the stock was unable to break above the resistance at ₹285 and has come-off slightly after testing it. Inability to break above ₹285 may drag the stocke lower to ₹272 and ₹270 and keep it range-bound between ₹270 and ₹285 for some time. A break below ₹270 can take the stock lower to ₹263. Further fall below ₹263 looks less probable. But if it does go down, the fall may extend to ₹255 and ₹252 which are the 100- and 200-day moving average support levels respectively. ITC will need a strong and decisive daily close above ₹285 to gain fresh momentum. Such a break can take the stock higher to ₹300. The region around ₹300 is a crucial long-term resistance level. So, the price action after testing this resistance will be key in deciding the next trend. If ITC manages to surpass ₹300 decisively, a fresh rally to ₹340 can be seen. But a reversal from ₹300 can trigger a corrective fall to ₹290.

Tata Steel breaks key support (₹464)

Tata Steel tumbled, breaking below the key near-term support at ₹475 and has closed 5.9 per cent lower for the week. Inability to bounce higher from the immediate support at ₹460 may keep the stock under pressure. However, the stock will need to break the ₹475-₹480 resistance zone decisively to ease the downside pressure. So, as long as it trades below this resistance zone, a fall breaking below ₹460 to test the 21-week moving average support at ₹450 cannot be ruled out. Further fall below ₹450 looks less probable, but if seen can be limited to ₹440 or ₹435. A couple of long-term trendlines and a Fibonacci retracement supports are poised between ₹450 and ₹435, which makes it a strong support zone. A subsequent reversal from this support zone may take the stock higher to ₹475 and ₹480. Further break above ₹480 will see a revisit of ₹500 levels. Investors can hold the long positions with a revised stop-loss at ₹415. Move the stop-loss further higher to ₹460 if the stock rallies to ₹520.

Supports to limit the downside in RIL (₹1,364.35)

RIL failed to sustain above ₹1,400 and fell about 3 per cent last week. Though further fall in the near term cannot be ruled out, a series of supports in the ₹1,320-₹1,300 zone can limit the downside. The 21-day moving average, couple of trendlines and a Fibonacci retracement support are poised in the ₹1,320-₹1,300 zone. This makes it a strong support zone and a break below it looks unlikely. The stock may witness fresh buyers coming in as it falls to this support zone. A subsequent reversal from this support zone can take the stock higher to ₹1,400 and ₹1,450 levels once again. The region between ₹1,430 and ₹1,450 is a key resistance to watch. A strong break and a decisive weekly close above ₹1,450 can boost the momentum and pave way for the next targets of ₹1,550 and ₹1,600. But inability to break above ₹1,450 may keep the stock range-bound between ₹1,300 and ₹1,450 . Investors can hold the long positions. Revise the stop-loss higher to ₹1,215 and move it further up to ₹1,320 as soon as the stock moves up to ₹1,550.

Infosys is likely to test its key support (₹931.4)

Infosys tumbled on Friday after its fourth quarter result announcement and closed 5 per cent lower for the week. The near-tern view remains negative. The crucial ₹905-₹900 support zone is likely to be tested this week. If the stock manages to reverse higher from this support zone and sustain above ₹900, the downside pressure may ease. A bounce back move to ₹950 and ₹985 is possible in that case. It will also mean that the ₹900-₹1,045 range in still intact. But if Infosys breaks below ₹900, it can fall to ₹880 initially. Further break below ₹880 will increase the likelihood it testing ₹815 or even ₹800. The ₹815-₹800 is a strong long-term support which is likely to halt the downtrend that has been in place since June 2016. An eventual reversal from this support zone may signal the beginning of a fresh leg of a long-term upmove. So a fall below ₹900 will be a good buying opportunity from a long-term perspective. Investors can hold the long positions and accumulate at ₹900 and at ₹850 if the stock falls below ₹900.

SBI hovers above a key support (₹291)

The support at ₹287 has held very well and SBI was range bound last week. If the stock manages to sustain above ₹287 and break above the immediate resistance at ₹295, a rise to ₹300 or ₹304 is possible in the near term. Inability to break above ₹304 and a reversal from there can take the stock lower to ₹300-₹295 or even lower levels. In such a scenario, a range-bound move between ₹287 and ₹304 is possible for some time. But a decisive breach above ₹304 will pave way for a rally to the medium-term targets of ₹327 and ₹330. On the other hand, if SBI breaks below ₹287 in the coming days it can test ₹284 immediately. A fall below ₹287 can see the stock extending its down move to ₹278 or ₹276. The levels of ₹278 and ₹276 are key trendline supports and further fall below ₹276 looks unlikely as the broader bullish outlook remains intact. Investors can hold the long positions. Keep the stop-loss at ₹230 and revise it

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