SBI

The stock of SBI advanced almost 3 per cent, when other market indices closed on a negative note last week. The stock is now testing a key resistance at ₹2,500 as well as its 21- and 50-day moving averages around this level. A strong up move can take the stock higher to ₹2600 which is its next important resistance level. The short-term trend will continue to be sideways, as long as the stock trades in the band between ₹2,350 and ₹2,600. Only an emphatic breakthrough of ₹2,600 will reinforce bullish momentum and push the stock higher to ₹2,750 and then to ₹2,850 in the medium-term. In such a scenario, investors with short- as well as medium-term perspective can consider initiating long position, with a stop-loss at ₹2,550. However, a conclusive fall below the lower end of the range at ₹2,350 can pull the stock lower to ₹2,250 and then to ₹2,100.

ITC

Last week, ITC’s was extremely volatile. It hit an intra-week low at ₹343.5 and then went on to mark an intra-week high at ₹359.7. It has formed a spinning top candlestick pattern in the weekly chart implying indecisiveness. But, the stock’s short-term downtrend that began from a peak of ₹379 will remain intact as long as the stock trades below ₹365 levels. For now, the key support at ₹344 is providing base for the stock. Therefore, the stock can move sideways, between ₹344 and ₹365. Traders with a short-term horizon should tread with caution and can consider initiating fresh short positions in rallies with a stop-loss at ₹365. A downward reversal from the resistance can pull the stock down once gain to ₹344 and then to ₹340 in the coming week. Key resistances above ₹365 are at ₹370 and ₹380. Important support below ₹340 is placed at ₹330.

Reliance

The key resistance in the band between ₹960 and ₹970 limited RIL’s up move making it fall 2.3 per cent last week. The stock has been on a medium-term downtrend since encountering resistance at ₹1,140. The short-term trend in the stock is also down. The stock is hovering below its 50- and 200-day moving averages. The stock is heading towards its immediate support at ₹920. A slip below this level can pull the stock down to ₹900. A further decline below the significant support at ₹900 can drag the stock down to ₹870 and ₹850 in the medium-term. Traders with a short-term perspective can make use of rallies to initiate short position with a stop-loss at ₹960. On the upside, only a strong rally above ₹1,040 can alter the stock’s downtrend and take it higher to ₹1,070 or ₹1,100 in the medium-term. Immediate resistances are at ₹960, ₹980 and ₹1000.

Infosys

Last week, Infosys advanced 2.5 per cent to record a new high at ₹3,986 levels, very close to the price target of ₹4,000. Subsequently, the stock started to decline, and closed on a negative note, on the back of profit booking. The stock could witness selling pressure at higher levels. Hence investors can consider taking profits off the table booking and staying on the sidelines. Significant resistance is in the zone between ₹3,950 and ₹4,000. A conclusive breakthrough of this band is needed for the stock to rally further to ₹4,200 levels or higher. The inability to do so can pull the stock down to ₹3,750 in the short term. A strong fall below the immediate key support at ₹3,750 can drag the stock down to ₹3,600 in the short term. The medium-term uptrend will remain intact as long as the stock trades above its significant long-term support at the level of ₹3,450.

Tata Steel

After a volatile session, the stock of Tata Steel ended on a flat note for the second consecutive week. Since its July 2014 peak at ₹570, the stock has been on a short-term downtrend. It continues to test the support zone between ₹440 and ₹450. The 200-day moving average is also poised at this zone. The indicators in the daily chart feature in the bearish zone implying weakness. Nevertheless, the stock needs to conclusively fall below ₹440 to strengthen its downtrend and decline to ₹426, ₹410 and ₹400. Traders can initiate short position in such a scenario with a stop-loss at ₹450. On the upside, a move above ₹460 will be a corrective rally which can encounter resistances at ₹467 or ₹480. Significant resistances above ₹480 are pegged at ₹500 and ₹510 levels. Investors with a medium-term horizon can stay on the sidelines for now.

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