SBI (₹2,625.6)

The stock of SBI moved out of its narrow sideways trading range and gained 4.4 per cent last week. With this up move, the stock conclusively breached its key immediate resistance band between ₹2,580 and ₹2,600, altering its short-term downtrend. The indicators on the daily chart have entered the bullish zone, implying upward momentum. Further, the relative strength index on the weekly chart has entered the bullish zone, adding strength. The near-term trend is up. Traders can consider buying the stock with a stop-loss at ₹2,580. The stock can trend northwards towards ₹2,750 and ₹2,850 in the weeks ahead. Investors with a medium-term perspective can also buy the stock with a stop-loss at ₹2,450. Key supports to note at are ₹2,520, ₹2,450 and ₹2,350 levels.

ITC (₹355.8)

Last week, the stock of ITC advanced 1.6 per cent, contrary to expectations. Since late July, the stock has been on a sideways movement in the wide band between ₹345 and ₹360. The stock needs to decisively breach either side of this band for a clear short-term trend to emerge. A positive break of ₹360 will reinforce bullish momentum and take the stock higher to ₹365, ₹375 and ₹386 in the short- to medium-term. Traders should consider buying the stock on such a breakout with a stop-loss at ₹350. However, failure to breach ₹360 can keep the stock moving sideways in the wide band between ₹345 and ₹360. A decisive fall below ₹340 will mar the stock’s medium-term uptrend that has been in place from the June low of ₹312 levels. The stock can decline to the next support at ₹335 and ₹330.

Infosys (₹3,672.3)

After testing the key resistance band between ₹3,800 and ₹3,850, the stock fell 1.6 per cent last week. The indicators on the daily chart have displayed negative divergence, implying that a trend reversal is on the cards. Therefore, investors with a medium-term perspective can consider taking profits off the table now. Traders with short-term perspective should tread with caution and initiate fresh short position on a fall below ₹3,650 levels with a stop-loss at ₹3,700. A decline below ₹3,650 can drag the stock to ₹3,550 and ₹3,450 levels. To confirm the stock’s short-term downtrend, it needs to emphatically fall below the ₹3,450 levels. Subsequent supports are placed at the levels of ₹3,350 and ₹3,200. Significant resistances above ₹3,850 are at ₹3,900 and ₹4,000 levels .

RIL (₹1,015.7)

The stock was volatile and closed on a negative note, declining one per cent last week. It tested the key resistance in the zone between ₹1,050 and ₹1,060, as well as its important support at ₹1,000 levels. The stock can remain choppy in the coming trading sessions as well. Hence, traders should desist trading at this juncture. A fall below ₹1,000 can trigger the next key support at ₹960 to cushion the fall. However, the stock could continue to trade sideways in a broad range between ₹960 and ₹1,060. An emphatic breakthrough of the lower boundary of the sideways range can pull the stock down to ₹920 and ₹900 levels. Conversely, a strong rally above ₹1,060 is needed to reverse the short-term downtrend and take the stock northwards to ₹1,100 and ₹1,142 levels in the medium term.

Tata Steel (₹517)

The stock was volatile and closed marginally higher for the week. It has been on a sideways movement in the band between ₹500 and ₹580 since early June this year, with a negative bias. It is hovering well below its 21- and 50-day moving averages. The daily volumes are on a decline. Further, the indicators on the daily chart are trending downwards. Traders with a short-term perspective can make use of up moves to initiate short position with a stop-loss at ₹530. The near-term targets for the stock are ₹500 and ₹493. Moreover, a strong fall below ₹500 can reinforce bearishness and pull the stock down to ₹476 and ₹450 in the medium term. The resistances to note are placed at ₹530, ₹550 and next in the range between ₹570 and ₹580 levels.

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