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Infosys (₹1,020.1)
Infosys was range-bound between ₹1,000 and ₹1,035 for the second consecutive week. Although the weekly candle reflects indecisiveness in the market, the daily candle retains the positive bias. A rise to test the ₹1,040-₹1,045 resistance zone is likely. A break above ₹1,045 can ease the downside pressure and take the stock up to ₹1,075. Further break above ₹1,075 will target ₹1,090 or ₹1,100. A strong break above ₹1,100 is needed to confirm that the downtrend that has been in place since June 2016 has reversed. Inability to break above ₹1,100 may trigger a corrective fall to ₹1,050. If Infosys fails to break above ₹1,045 this week, it can dip to revisit ₹1,000 levels. The current sideways range-bound move can continue. Long-term investors can hold the long positions. The stock will come under pressure only if it declines below ₹1,000. This can drag it to ₹980 or ₹975 initially. If the stock declines further below ₹975, it can fall to ₹950 However, such a sharp fall will be a good opportunity to accumulate long positions.
ITC (₹263.2)
ITC was stuck in a narrow range in the past week. The immediate outlook is unclear. The levels of ₹257 and ₹270 are the key support and resistance levels to watch in the coming days. A breakout on either side of ₹257-₹270 will decide the next trend for the stock. Immediate resistance is at ₹267. A decisive close above this hurdle might increase the possibility of an eventual breakout above ₹270. A strong break above ₹270 can take the stock higher to ₹275 and ₹280 initially. Further break above ₹280 will target ₹290 and ₹300. The region around ₹300 is a key long-term resistance. Whether the stock breaks above ₹300 or not will decide the next trend. Inability to breach above ₹267 may increase the possibility of the stock breaking below ₹257. A break below ₹257 may drag ITC lower to ₹250 or ₹248. The presence of 100-, 200-day moving average and a Fibonacci retracement support around ₹248 makes this level a very strong short-term support. The downside in the stock could be limited to ₹248 if it declines below ₹257.
SBI (₹272)
SBI was range-bound between ₹264 and ₹275 for the second consecutive week. Within the range, the stock bounced from the lower end to the upper end. Although the weekly candles are mixed, the daily candle chart shows signs of a turnaround. Also, the 55-week moving average has crossed over the 200-week moving average, suggesting that the downside could be limited in the short term. A strong break and a decisive close above ₹275 can take it to ₹280. This can take SBI higher to ₹288 or ₹290. Further break above ₹290 will see the rally extending to ₹300. A strong break above ₹300 may boost the momentum for a fresh rally to ₹327-₹328 over the medium term. Investors can hold the long positions with a stop-loss at ₹220. Revise the stop-loss to ₹230 when the stock rises to ₹295. The region around ₹260 is a key support. SBI will come under pressure only if it declines below this support decisively. This may trigger an intermediate dip to ₹250. Further fall below ₹250 looks unlikely.
RIL (₹1,281.4)
RIL surged to ₹1,326.75 in the past week but failed to sustain higher and has come-off from this intraweek high. However, there is no sign on the chart that the corrective fall has begun. Support is around ₹1,250 and the stock will come under pressure only if it breaks below this level. While the stock manages to sustain above this support, a range-bound move between ₹1,250 and ₹1,300 is possible for some time. A strong break and a decisive close above ₹1,300 may bring in fresh momentum. This can take it higher to ₹1,350 initially. Further break above ₹1,350 will increase the likelihood of the stock revisiting ₹1,500 levels over the medium term. If RIL declines below ₹1,250 in the coming days, it can fall to ₹1,200. But as mentioned last week, ₹1,200 will now serve as a strong support as this level was breached with strong volumes. A break below ₹1,200 is unlikely. Dips to ₹1,200 will bring in fresh buying interest in the stock. Medium-term investors can hold the long positions and retain the stop-loss at ₹1,145.
Tata Steel (₹467.8)
Tata Steel tumbled over 5 per cent last week. The near-term view is negative. However, key supports are at ₹460, ₹455 and ₹450. These series of supports can halt the fall. The stock is more likely to reverse higher from the ₹460-₹450 support zone. The reversal will keep the broader uptrend intact and take the stock higher to ₹500 levels once again. A strong break and a decisive close above ₹500 is needed now for the stock to gain fresh momentum. Such a break can take it higher to ₹540-₹550, which is a crucial long-term resistance zone. On the other hand, if Tata Steel breaks below ₹450 decisively, it can fall to ₹435-₹430. Further fall below ₹430 looks less likely at the moment. But if the stock breaks below ₹430 it can extend its fall to ₹420 or ₹415. A strong trendline support is present around ₹415. which is likely to halt the fall. As such, an upward reversal is more likely thereafter. Medium-term investors can hold the long positions with a stop-loss at ₹410. Partial profits can be booked at the level of ₹530.
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