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SBI (₹240.95)
SBI continues to trade within a sideways range of ₹232-250. The stock recorded a high of ₹252.9 on Monday and has reversed sharply to close over 3 per cent lower for the week. Within the range, SBI can decline further to test ₹235 and ₹232 this week. A breakout on either side of ₹232-₹250 will decide the next leg of move for the stock. On a reversal from ₹232, SBI will continue to trade sideways. In such a scenario, a rise to ₹250 is possible. Short-term traders can wait for dips and go long if the stock reverses higher from ₹232, with a stop-loss at ₹228 for the target of ₹240. The outlook will turn bearish if the stock declines below ₹232. The ensuing target on this will be ₹228. On the other hand, the outlook will turn bullish only if the stock moves past ₹250 decisively. The next targets will be ₹258 and ₹260.
ITC (₹335.6)
ITC failed to extend its up move last week. The stock recorded a high of ₹350.8 on Thursday and reversed sharply to close 2.4 per cent lower for the week. A fall to test the 21-week moving average support at ₹330 looks likely in the initial part of this week. Whether ITC breaks below ₹330 or reverses higher from there will decide the ensuing trend for the stock. A reversal from ₹330 will keep the stock range-bound between ₹330 and ₹350 for some time. Short-term traders can go long if the stock reverses higher from ₹330 with a tight stop-loss at ₹328 and for the target of ₹340. But if the stock breaks below ₹330, the outlook will turn bearish. Such a break can take it lower to the next support level of ₹326. Further break below ₹326 will increase the danger of a fall to ₹320.
Infosys (₹1,047.8)
The key resistance for the stock of Infosys at ₹1,100 held its ground last week. It recorded a high of ₹1,098 on Monday and tumbled to close 1.7 per cent lower for the week. The outlook is bearish with resistances at ₹1,063, ₹1,072 and ₹1,078. An immediate fall to ₹1,035 looks likely this week. Further break below ₹1,035 will see Infosys revisiting the psychological ₹1,000 level in the coming days. Short-term traders can go short at current levels. Stop-loss can be kept wider at ₹1,074 for the target of ₹1,010. Intermediate rallies to ₹1,060 and ₹1,070 can be used to accumulate the short positions. The outlook for the stock will turn bullish only if it breaks above ₹1,100 decisively. Such a break will pave way for a fresh rally to ₹1,150 and ₹1,200 thereafter. But such a strong rally looks unlikely at the moment.
RIL (₹965.75)
The stock of RIL closed on a mixed note last week. The stock fell 1.4 per cent. Immediate outlook is unclear. Traders can stay on the sidelines until a clear trade signal emerges. The 21-day moving average support is at ₹951. A break below this level will turn the outlook bearish. Such a break can drag the stock lower to the next support at ₹931 and ₹920 which are the 100- and 55-day moving average levels respectively. Resistances for the stock are at ₹980 and ₹990. A strong daily close above ₹980 will signal bullishness. It will increase the possibility of the stock breaking above its next resistance at ₹990. The next target will be ₹1,000. A strong break above ₹1,000 will ease the downside pressure and mitigate chances of a further fall. Such a break will pave way for RIL to rise to ₹1,050 and ₹1,075.
Tata Steel (₹240.2)
Tata Steel extended its rally to close in the green for the fourth consecutive week. The stock has closed about 4 per cent higher. But the pull back move from the high of ₹245.6 towards the end of the week needs to be watched. This down move has happened from an important medium-term trend line resistance. The key level to watch this week will be ₹244. A strong break above ₹244 will ease the downside pressure and take the stock to ₹250. Only a strong break above ₹250 will confirm a trend reversal. But, inability to break above ₹244 will keep the medium-term downtrend intact. Support is at ₹236. A strong break below it can take the stock lower to the 21-day moving average support at ₹229. This will increase the danger of the stock falling to ₹210.
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