Reliance Industries recovered from the intra-week low of Rs 673 to close Rs 45 higher. The bullish engulfing candle and morning star pattern in the weekly chart portends a possible turnaround from these levels.

But we need to see the action in the next couple of weeks to confirm this.

Decline below Rs 670 in this period will drag the stock lower to Rs 557, Rs 532 and Rs 512 in the coming weeks.

Short-term resistances will be at Rs 746, Rs 770 and Rs 792. The 21-day moving average at Rs 760 and 50 DMA at Rs 784 will also pose hurdles to rallies in the near-term.

Fresh long positions are suggested only on strong move above Rs 760. We stay with the view that the medium-term view remains down as long as the stock trades below Rs 790.

Infosys (Rs 2,419.2)

The bullishness in the market did not trickle down to Infosys and the stock closed only marginally higher with Rs 31 gain. The short-term trend is sideways in the stock. It is consolidating in the band between Rs 2,300 and Rs 2,500 since the last week of April. The medium-term trend in the stock is down.

But the fact that it is consolidating at key medium-term support band between Rs 2,200 and Rs 2,300 lends solace.

A sustainable bottom is possible here. But if the stock breaks below it could halt around Rs 2,000.

Investors with long-term perspective can accumulate the stock at current levels with stop at Rs 1,980.

Key short-term resistance band would be between Rs 2,540 and Rs 2,560. The stock needs to move above this band to signal a reversal in the short-term trend.

State Bank of India (Rs 2,180)

State Bank was a strong performer last week; gaining 7.5 per cent.

The stock is in an uptrend since the low of Rs 1,804. This uptrend will face resistance around Rs 2,225 in the week ahead.

If the stock reverses from this level, it will be a time to go short. Break of this level can take the stock higher to Rs 2,475.

Short-term supports will be at Rs 2,044 and Rs 1,956.

SBI is attempting to carve out a medium-term uptrend from the low of Rs 1,576.

Formation of a higher bottom at Rs 1,804 is a positive. Medium-term targets for the stock are at Rs 2,552 and Rs 2,780.

Tata Steel (Rs 410.5)

Tata Steel too gained over 3 per cent last week. But the stock is consolidating in an extremely narrow band between Rs 392 and Rs 420 over the last four weeks.

The medium-term trend is still down and a strong move above Rs 430 is needed to signal a reversal in the short-term uptrend.

Resistances in the form of 50- and 200-day moving averages at Rs 430 and Rs 440 will also prove to be hurdles in the near term. The stock is currently placed at critical support at Rs 389. Breach of this level will pull the stock lower to the December low at Rs 334.

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