SBI breaks a key support level (₹184.7)

The stock of SBI tumbled more than 11 per cent, decisively breaching a key support in the band between ₹190 and ₹200. Both short and medium-term trends are down. But the indicators in the daily chart feature in the oversold territory, implying that a corrective rally is on the cards. Moreover, the stock has breached the lower boundary of the Bollinger Bands, implying that there could be a bounce back in the near future. Traders with a short-term view can exit their short positions and wait on the sidelines till the corrective rally plays out. The short-term outlook will remain in place as long as the stock trades below ₹220 levels. Any corrective rally is likely to encounter resistance at ₹200 and ₹210. Supports to note are at ₹180 and ₹170. An emphatic fall below ₹170 can drag the stock down to ₹150 in the medium term.

ITC tests a crucial base (₹313.7)

The stock of ITC was choppy and closed the week on a flat note. It continues to test the key base level at ₹311. Medium as well as short-term trends are down. An emphatic slump below ₹311 will intensify the shock’s downtrend and drag the stock lower to ₹300 initially. Next supports below ₹300 are at ₹290 and ₹285 levels. The indicators in the daily chart hover in the bearish zone backing the stock’s decline. The indicators in the weekly chart are getting ready to enter the bearish zone from the neutral region. Last week, the stock moved sideways pausing just above the support level of ₹311. A downward break is possible. Hence, traders with a short-term view can sell the stock on rallies with a stop-loss at ₹320 levels. Significant resistance above ₹320 is at ₹335. A strong rally above ₹335 is needed to change the downtrend.

Infosys is on a strong uptrend (₹1,140.2)

The stock of Infosys jumped 4.3 per cent on a single day after the company announced a strong set of numbers for the December quarter. This rally helped the stock to conclusively break out of its resistance zone between ₹1,100 and ₹1,110. The stock has recorded a 7.4 per cent weekly gain backed by strong volumes. The indicators and oscillators in the daily chart feature in the bullish zone, backing the up move. However, the stock has met with a key hurdle around ₹1,160-1,170. With the broader market sell-off, the stock could witness some selling pressure this week. So, traders with a short-term view can make use of declines to buy the stock with a stop-loss at ₹1,110 levels. Strong rally, after the correction, can take the stock northwards to ₹1200 or ₹1,220 in the medium term. Supports are at ₹1,120, ₹1,100 and ₹1,060.

RIL remains resilient (₹1,073.1)

While many bellwether indices plunged last week, the stock of Reliance Industries remained resilient and surged 4.8 per cent. It managed to move past its resistance around ₹1,050 decisively. The medium as well as short-term trends are up for the stock. It trades way above its 50 and 200-day moving averages. The daily and weekly relative strength indices feature in the bullish zone. Traders with a short-term horizon can make use of declines to buy the stock while maintaining a stop-loss at ₹1,035. Continuing its current rally, the stock can test resistance at ₹1,100. Further breakthrough can take the stock northwards to the ₹1,140-₹1,150 band in the medium term. On the other hand, a strong fall below the key support in the range of ₹990 and ₹1,000 can weaken the stock’s uptrend and pull it down to ₹966.

Tata Steel resumes its downtrend (₹229.9)

The stock of Tata Steel plummeted 9.4 per cent, breaking the key support at ₹250 last week. With this fall, the stock appears to have resumed its medium as well as intermediate-term downtrend. It has breached its 50-day moving average. The short-term outlook is bearish. The relative strength index in the daily chart has entered the bearish zone from the neutral region. The price rate of change indicator in the daily chart hovers in the negative terrain, implying selling interest. Traders with a short-term view can consider selling the stock at current levels while maintaining a stop-loss at ₹243. A strong fall below ₹225 can pull the stock down to ₹213 and then to ₹200 levels. Significant resistances are placed at ₹250, ₹263 and then at ₹276 (200-day moving average).

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