The stock of SBI extends its up move

The stock of SBI advanced almost 2 per cent extending its rally last week. However, it faces difficulty in surpassing its key immediate resistance ahead at ₹270. An emphatic breakthrough of this level will pave the way for an up-move to ₹280 and then to the upper boundary at ₹290 levels. This will keep the stock’s medium-term sideways consolidation phase intact and it will continue to move in a broad band between ₹258 and ₹290. Traders with a short-term perspective can consider initiating long position on a strong rally beyond ₹270 levels. On the other hand, the stock can decline and find support in the base range between ₹258 and ₹260. A decisive downside breakdown below ₹258 will pull the stock lower to ₹250 and ₹241 in the short term. Subsequent support is pegged at the level of ₹234.

ITC tests hurdle at ₹318

Last week, the stock was very volatile and advanced marginally by 1 per cent. It recorded an intra-week high at ₹318 levels. After testing the significant resistance at ₹318, the stock started to decline. Nevertheless, it has a key resistance at ₹300. A strong fall below this level will pave the way for a decline to ₹285 and then to ₹273 in the short term. The relative strength index on the daily chart features in the neutral region. Traders with a short-term view must stay vigilant and initiate fresh short position only if the stock falls below ₹300 levels. On the upside, a conclusive rally above ₹318 can alter the stock’s short-term downtrend and reinforce bullish momentum to push the stock northwards to ₹331. Such a rally will give buying opportunity for the short-term traders. Subsequent resistances are at ₹342 and ₹350 levels.

Infosys stuck in a sideways range

The stock of Infosys was very choppy last week and formed a spinning top candlestick pattern implying indecisiveness. After testing the key resistance at around ₹1,025 and the 200-day moving average line, the stock fell to record an intra-week low at ₹987 levels. Both the indicators and oscillators in the daily chart show mixed signals. The stock needs to decisively rally above ₹1,025 to pave the way for an up move to ₹1,050 and then to ₹1,070 levels over the short term. Therefore, traders with short-term horizon should tread with caution and go long only on a strong rally beyond ₹1,025 while maintaining a fixed stop-loss. However, lack of strength will keep the stock moving sideways between ₹970 and ₹1,025. Next support is pegged at ₹950. Medium-term investors can desist from trading at this juncture.

RIL tests a key resistance level

The stock of Reliance Industries too was choppy last week and formed a spinning top candlestick pattern signalling indecisiveness. The stock now tests a significant medium-term resistance at ₹1,000. The daily relative strength index displays a negative divergence implying that a near-term trend reversal is on the cards. Hence, the stock can witness a near-term corrective decline from the current resistance level. Traders with a short-term view can consider booking profits on their long positions and stay on the sidelines for further cues from the market. A strong fall below the immediate support at ₹980 will confirm that the stock’s near-term rally has come to an end . Future support level to watch is at ₹960. Conversely, a strong break-out of the current resistance can push the stock higher to ₹1,026 and ₹1,050. Next key resistance is at ₹1,080.

Tata Steel resumes its downtrend

Following an initial rally to ₹316, the stock’s up-move lost momentum as it slumped 2 per cent for the week. There has been an increase in volumes with decrease in the stock price over the past three trading sessions, signalling weakness. Further, the daily indicators and oscillators are showing bearish signals implying downward momentum. The short and medium-term trends are down for the stock. Traders with a short-term perspective can make use of rallies to initiate short position with a stop-loss at ₹310 levels. A decisive fall below ₹291 can pull the stock down to ₹280 in the coming week. Having said that, a conclusive rally above ₹316 can bring back a bullish momentum and take the stock northwards to ₹330 levels in the short term. After that, resistances are placed at ₹340 and ₹350 levels.

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