SBI (₹315.6)

Last week, the SBI stock surged 4 per cent after testing the key support around ₹300. However, the stock is currently testing its upper boundary of the sideways range and an important resistance at ₹320. Traders with a short-term perspective should tread with caution now. The stock hovers at a short-term trend deciding level. A strong rally above ₹320 can take the stock higher to ₹327. But to reinforce the bullish momentum, it has to breach this level for an up move to ₹340 or ₹350 in the medium term. Therefore, investors with a medium-term perspective can hold the stock with a stop-loss at ₹270. The inability to rally above ₹320 can keep the stock within the sideways consolidation band between ₹300 and ₹320. A fall below ₹300 can pull it down to ₹295 and then to ₹287. Immediate support is at ₹310.

ITC (₹359.3)

The ITC stock fell almost 3 per cent to mark an intra-week low of ₹346. It subsequently bounced back and closed the week on a marginally positive note. The short-term trend has been down since the early December 2014 peak of ₹400. As long as the stock trades below ₹370, its short-term downtrend will remain in place. It is testing its key support at ₹350 levels. A strong break of this support can reinforce the bearish momentum and pull the stock down to ₹340 levels. Next significant support is at ₹330 level. On the upside, the stock needs to decisively rally above ₹370 for an up move to ₹378 and ₹390 levels in the medium term. So, traders with a short-term perspective can remain on the sidelines for now and go long if the stock moves past ₹370 or go short if it falls below the level of ₹350.

Infosys (₹2114.1)

Infosys rallied in line with our expectation, and surpassed the initiate target of ₹2,100. But subsequently, the stock met with a resistance at ₹2,150 and lost its bullish momentum. The indicators in the daily chart are showing signs of weakness. Traders can consider taking profits off the table if the stock fails to move up to its next key resistance at ₹2,200. An emphatic breakthrough of ₹2,200 can push the stock northwards to ₹2,300 level. The short-term uptrend will remain intact as long as the stock trades above its key support level of ₹2,020. Traders can hold their long positions with a stop-loss at ₹2,020. A fall below ₹2,020 will have bearish implications and pull the stock down to ₹1,950 and ₹1,900. Next support is at ₹1,800. Investors with a medium-term view can hold the stock with a stop-loss at ₹1,800 .

RIL (₹869)

After a choppy trade, the stock of Reliance Industries managed to close the week 1 per cent higher. It has been testing its significant long-term support at ₹840 since January 6. The daily indicators such as relative strength index and price rate of change display a positive divergence, implying a potential trend reversal. But the stock needs to decisively rally above ₹880 to confirm a trend reversal. Such a rally can push the stock higher to ₹900. Traders can buy the stock above ₹880 with a stop-loss at ₹868 level. An up move beyond ₹900 can take the stock higher to its next key resistance at the level of ₹925. Conversely, the stock has strong support at ₹840 which can be re-tested. A fall below this level can see the stock declining to the levels of ₹820 and ₹800. Investors with a medium-term perspective need to tread with caution.

Tata Steel (₹382.9)

The stock of Tata Steel lost 4 per cent last week, accompanied by good volumes. With this the stock has breached a key support at ₹390. From sideways consolidation, the short-term trend has now turned bearish. The stock trades way below its 50- and 200-day moving averages. The indicators in the daily chart feature in the bearish zone. Both the short and medium-term trends are down for the stock. Traders with a short-term outlook can make use of rallies to initiate fresh short position with a stop-loss at ₹392. Short-term targets are ₹370 and ₹355 levels. On the upside, however, a strong rally above ₹400 can take the stock higher to ₹420 in the short term. Only a convincing rally above ₹420 will strengthen the stock’s uptrend and pave way for an up move to the level of ₹440.

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