SBI (₹208.9)

The stock of State Bank of India (SBI), which was moving in a narrow sideways band between ₹224 and ₹232, tumbled 8 per cent in the previous week. The stock has resumed its medium as well as short-term downtrend. It currently tests a key support at ₹210. The daily relative strength index is in the oversold territory. Other indicators in the daily chart too hover in the negative terrain. Moreover, the indicators in the weekly chart also feature in the bearish zone, backing the downtrend. The stock could witness minor corrective up moves. So, traders with a short-term view can make use of the rallies to initiate fresh short position while maintaining a stop-loss at ₹220. Continuation of the down move can drag the stock down to the significant long-term base zone between ₹190 and ₹200.A decisive rally above ₹232 is needed to alter the short-term downtrend. Immediate resistance is at ₹224.

ITC (₹313.3)

Last week, the stock of ITC failed to move above its key resistance level of ₹330 and plunged 4.3 per cent. While declining, the stock decisively breached its key support at ₹320. Now, it tests the next key base at ₹311. Further fall can pull the stock down to ₹300 in the coming week. The stock trades well below its 50 and 200-day moving averages. Moreover, the relative strength index in the daily chart feature in the bearish zone indicates downward momentum. Indicators in the weekly chart are on the brink of entering the bearish zone from the neutral region. After moving sideways, the stock may resume its short-term downtrend. Therefore, traders with a short-term perspective can make use of the rallies to sell the stock while maintaining a stop-loss at ₹320 levels. Key resistance above ₹320 is at ₹335. Only a strong rally above the level of ₹335 will alter the downtrend. Significant support below ₹300 is at ₹290 or ₹285.

Infosys (₹1,062.6)

After struggling to break through the significant resistance zone between ₹1,100 and ₹1,110, the stock of Infosys fell 3.7 per cent in the prior week. The company is scheduled to announce its results for the quarter ending December 31, 2015 on January 14. Since mid-November, the stock has been moving in a wide range between ₹1,030 and ₹1,110. The indicators and oscillators in the daily as well as weekly chart show mixed signals and hover in the neutral region. A positive outcome from the results will lead to an upward breakthrough of this sideways range and take the stock up to ₹1,150. However, breakthrough of the lower boundary at ₹1,030 will strengthen the medium-term downtrend that has been in place since the October peak. It can decline to ₹1,000 in the short term. Hence, traders should tread with more caution. Key supports are at ₹1,050 and ₹1,030. Resistances are at ₹1,085 and ₹1,110.

RIL (₹1,024)

The stock of Reliance Industries was resilient and rose almost 1 per cent with good volume in the midst of the broader market sell-off last week. It has been on a medium-term uptrend since the September 2015 low of ₹826. The short-term trend is up for the stock. The daily and weekly relative strength index features in the bullish zone. The price rate of change and moving average convergence divergence indicators hover in the positive territory but show lack of strength. Further, the stock faces a key long-term resistance ahead at ₹1,050. So, traders with a short-term view should tread with caution and consider exiting the long position at this resistance level while maintaining a stop-loss at ₹1,000. A decisive fall below the immediate support at ₹966 will mar the short-term uptrend. To alter the medium-term uptrend, the stock needs to tumble below the important base between ₹910 and ₹920. Supports are at ₹1,000 and ₹987.

Tata Steel (₹253.7)

Thanks to an initial rally, the stock of Tata Steel recorded an intra-week high at ₹276. But it later reversed direction, being choppy and declining 1.4 per cent during last week. Currently, the stock tests a key support at ₹250. An emphatic fall below this level will weaken the stock and drag it down to ₹240 and then to ₹225 in the short term. The indicators in the daily chart show signs of bearishness. Traders can wait and consider initiating fresh short positions on a strong decline below ₹250 with a stop-loss at ₹255. The stock can extend its decline to test supports at ₹240 and then at ₹225 levels in the short term. To alter the short-term uptrend that has been in place for sometime now, the stock needs to breakthrough the support at ₹225. It can thus decline to ₹215 or ₹200 in the short to medium term. Significant resistances beyond ₹263 are at ₹276 (200-day moving average) and ₹281.

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