SBI (₹195.7)

The short-term uptrend in SBI has paused in the last couple of weeks. The stock dropped over 4 per cent in the first trading day last week. However, it managed to recover most of its loss and closed almost flat. The stock faces resistance near ₹199. A range-bound move between ₹187 and ₹199 is likely in the near term. A breakout on either side of this range will decide the next leg of move. With the 21-day moving average also around ₹187, risk of a downward breach below ₹187 seems less probable. There is in fact high possibility of the stock moving past ₹199. The next target is ₹202. Further break above ₹202 will take the stock higher to ₹207 and ₹210 in the short term. Traders with a short-term view can make use of dips to go long at ₹190. Stop-loss can be kept at ₹185 for the target of ₹201. The short-term outlook will turn negative if SBI declines below the 21-day moving average support. It can fall to ₹180 and ₹177.

ITC (₹336)

ITC is gaining momentum. The initial fall last week found support near ₹320 and the stock surged 3.6 per cent. Cluster of supports are visible between ₹323 and ₹321 which can limit the downside. An immediate break below ₹321 looks less probable. Near-term resistance is at ₹341, which is likely to be tested this week. A strong break and a decisive close above ₹341 will increase the bullish momentum. This can then take the stock higher to ₹350 and ₹360. The break above ₹341 will also confirm the inverted head and shoulder pattern. Long positions taken a couple of weeks back can be retained with a revised stop-loss at ₹318 and for the target of ₹338. Investors with a medium-term view can initiate fresh long positions with a stop-loss at ₹318 for the target of ₹355. Make use of declines to ₹325 to accumulate long positions. The bullish outlook will get negated only if the stock falls below ₹320. This can drag ITC lower to ₹315 or even lower.

Infosys (₹1,205.90)

Infosys is not gaining enough momentum to rally further. The stock made an intraday week high of ₹1,234 but reversed lower immediately. It hovered around the psychological ₹1,200 level for most part of the week before closing almost flat for the week. Though the broader view is positive, the immediate outlook is unclear. The stock might consolidate within its support zone of ₹1,180-1,175 and resistance at ₹1,235. Traders with a short-term perspective can stay on the sidelines at the moment. However, an immediate break below ₹1,175 looks less probable. Wait for dips and go long on a reversal from the above mentioned support zone. Stop-loss can be placed at ₹1,155 for the target of ₹1,250. A strong break above the resistance at ₹1,235 can take Infosys to ₹1,260. The stock will come under pressure in the short term, if it breaks below the 21-day moving average support at ₹1,175. The next target is ₹1,145.

RIL (₹1,033.65)

Reliance Industries is stuck inside a sideways range between ₹1,000 and ₹1,055 for the fourth consecutive week. It is currently moving down from the upper end of this range. Intermediate support is at ₹1,020. A break below this level can take the stock to ₹1,010 and ₹1,000 — the lower end of the range this week. A reversal thereafter will keep the range-bound movement intact and take the stock higher to ₹1,050 once again. Traders with a short-term perspective can wait for dips and go long near ₹1,020. Accumulate longs on further declines to ₹1,010 and ₹1,000. Keep the stop-loss at ₹995 for the target of ₹1,055. A breakout on either side of the current range will decide the next leg of move. A strong break above ₹1,055 will trigger a fresh rise to ₹1,080 and ₹1,090. On the other hand, a strong break below ₹1,000 will turn the outlook negative. The ensuing targets on such a break will be ₹980 and ₹960.

Tata Steel (₹317.7)

Tata Steel was volatile last week. It tumbled 5 per cent in the first trading day of the week, but managed to recover all the losses thereafter. The psychological support at ₹300 has held strongly. Last week’s candlestick pattern reflects indecisiveness. An initial dip to ₹310 or ₹305 is possible this week. However, the overall view remains bullish and such dips will be a good opportunity for short-term traders to take long positions. Strong support is between ₹300 and ₹295, which can limit the downside for the stock. A rise to ₹340 and ₹350 looks likely in the coming weeks. Short-term traders can wait for dips and go long at ₹310. Stop-loss can be kept at ₹290 for the target of ₹340. Accumulate more longs if the stock extends its fall to ₹300. Medium-term investors can continue to hold their long positions for the target of ₹340. Revise the stop-loss higher to ₹290 from ₹280.

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