SBI in a short-term uptrend (₹188.4)

The stock of State Bank of India skyrocketed more than 20 per cent accompanied by good volumes last week. This rally has helped breach a key resistance at ₹174. However, the stock is currently testing a key resistance at ₹185. After a minor correction around ₹185, the stock can move up to ₹200. The daily relative strength index feature in the bullish zone and the weekly RSI has just entered the neutral region from the bearish zone. Daily volumes continue to gain momentum. Since recording a 52-week low at ₹148 in early February, the stock has been on a short-term uptrend. Nevertheless, the medium-term trend is down. Only a conclusive break-out of ₹200 will alter this downtrend and take the stock up to ₹210 or ₹220. Investors with a short-term view can hold the stock and make use of declines to accumulate with a stop-loss at ₹174. Supports below ₹174 are at ₹160 and ₹150.

Short-term trend is up for ITC (₹316)

After an 8 per cent fall on Monday, the stock marked a 52-week low at ₹268 and bounced back smartly to close on a positive note. The stock extended its bullish momentum witnessed on Monday and surged 8.6 per cent through the week. It has conclusively breached a key resistance at ₹306 and altered its short-term downtrend. The stock however encountered a key medium-term resistance at ₹331 and is witnessing a corrective fall. The daily and weekly relative strength indices feature in the neutral region. Other indicators in the daily chart show mixed signals. Short-term traders should tread with caution as long as the stock tests its 200-day moving average and resistance at ₹331. Fresh long position can be initiated above ₹331 with a fixed stop-loss. This can take the stock up to ₹340 and ₹350. But a decisive fall below the immediate support level of ₹310 can drag it down to ₹306 or ₹295.

Infosys tests a key hurdle (₹1,170.5)

Amid volatility, the stock of Infosys advanced 4.4 per cent last week. The stock decisively breached a key immediate resistance at ₹1,130. But, it encounters a long-term resistance in the band between ₹1,160 and ₹1,170. It has decisively breached its 21 and 50-day moving averages and trades well above them. Both short and medium-term trends are up. The daily relative strength index has entered the bullish zone from the neutral region. Moving average convergence divergence and price rate of change hover in the positive territory backing the stock’s uptrend. Traders with a short-term view can make use of dips to buy the stock while maintaining stop-loss at ₹1,145. Targets on a strong move beyond ₹1,170 are ₹1,200 and ₹1,220. Key supports are at ₹1,130 and ₹1,100. Slump below these supports will mitigate the bullish momentum and drag the stock down to ₹1,070 levels.

RIL in a near-term uptrend (₹1,006.5)

Last week, the stock of Reliance Industries gained almost 6 per cent with good volumes. The stock conclusively breached a key hurdle at ₹990 while trending up. It trades well above the 50 as well as 200-day moving averages. However, it now faces difficulty in sustaining its bullish momentum. The indicators in the daily chart have started to decline. Hence, traders with a short-term view should tread with caution in the coming week. If the stock finds support at ₹990 and resumes its short-term uptrend, traders can initiate fresh long positions with a stop-loss at ₹985. But, a plunge below ₹990 can pull the stock down to ₹960 or even to ₹940 in the coming weeks. Strong rally above ₹1,030 will be a positive sign from a medium-term perspective. As long as the stock trades above ₹960, its medium-term uptrend will remain in place. Significant resistances above ₹1,030 are at ₹1,050 and ₹1,080.

Tata Steel breaks key resistances (₹288.3)

The stock of Tata Steel was in focus last week, as it zoomed 16 per cent. This rally has emphatically breached multiple key resistance levels and 200-day moving average. Both short and medium-term trends are now up for the stock. It hovers well above its 50 and 200-day moving averages. The indicators and oscillators in the daily chart feature in the positive territory, backing the stock’s ongoing uptrend. The indicators in the weekly chart are trending upwards. Traders with a short-term view can make use of dips to buy the stock while maintaining a stop-loss at ₹275 levels. The stock can extend its rally and test resistances at ₹300 or ₹313 in the medium term. But a decisive fall below the immediate support level of ₹275 can bring back selling pressure and pull the stock down to ₹250 and then to ₹235 levels.

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