High Five

SBI (₹1,902.2)

SBI skyrocketed over 11 per cent with good volumes, breaching its key resistance at ₹1,700 in the previous week. However, the stock is currently testing another significant long-term resistance at ₹1,900. As the indicators on the daily chart are ruling in the overbought territory, a minor correction cannot be ruled out. In such a scenario, the stock can decline to ₹1,800. Traders with a short-term perspective can make use of declines to buy the stock with a stop-loss at ₹1,780. An emphatic break-out of its current resistance, can take the stock northwards to ₹2,000 and then to ₹2,100 in the ensuing weeks. Key supports below ₹1,800 are at ₹1,700 and ₹1,600. Investors with a medium-term horizon can hold their long positions with a stop-loss at ₹1,650.

ITC (₹359)

The stock inched up marginally last week and is still testing its significant resistance in the band between ₹355 and ₹360. Traders with a short-term perspective should desist from trading in ITC as long as it is testing the resistance band. The stock has been on a short-term uptrend from its February low at ₹311 and is hovering well above its 50- and 200-day moving averages. Failure to breach its current resistance can drag the stock down to ₹345 or to ₹335 in the short term. Conversely, a decisive breakthrough will pave the way for an upmove to ₹375-380 zone in the short to medium term. This will be a cue for investors to go long on the stock.

Infosys (₹3,257.7)

Infosys extended its downfall by declining one per cent last week. Its present downtrend has retraced 38.2 per cent of the Fibonacci retracement level of its prior uptrend and found support in the ₹3,200 to ₹3,220 band. This zone is also an important long-term base. The stock’s 200-day moving average is also providing support at this band. An upward reversal from this level can take the stock higher to ₹3,350 or ₹3,450 in the short term. Traders with a short-term perspective can buy the stock with a stop-loss at ₹3,220. On the other hand, downward breach of the aforementioned support band will mitigate this view and pull the stock down to ₹3,100 or even to ₹3,000.

Reliance Industries (₹914.1)

Last week, the stock gained 3 per cent accompanied by good volumes. It has breached the significant resistance zone in the range between ₹890 and ₹900 as well. The stock is hovering well above its 50- and 200-day moving averages. Traders can consider holding their long positions with a stop-loss at ₹898. It can extend its short-term uptrend that started in late February to ₹925 and then to ₹950 in the medium term. Investors with a medium-term perspective can buy the stock with a stop-loss at ₹820. The medium-term trend continues to remain sideways. A strong rally above ₹950 will alter this sideways trend and take the stock higher to ₹1,000 in the long run.

Tata Steel (₹380.9)

The stock has shown strength by gaining 5 per cent last week. It also breached its 21- and 50-day moving averages recently. However, it is now testing a key resistance at ₹380 with a positive bias. Traders with a short-term perspective can buy the stock with a stop-loss at ₹370. Targets are ₹390 and ₹400. Further, a positive rally above ₹400 can push the stock northwards to ₹420 in the ensuing weeks. The indicators on the daily chart have entered the bullish region from the neutral zone, backing the short-term bullish view. Significant supports to watch below ₹370 are at ₹350, ₹340 and ₹330.

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