The stock carried on its volatile ways in the previous week too, and climbed Rs 9. It is trading well above its 50 and 200-day moving averages. The daily relative strength index has re-entered the bullish zone from the neutral region and weekly RSI has also entered the bullish zone after many months. Short-term trend continues to be up for the stock. Last week, the stock managed to trade above the stop-loss of Rs 850 on closing basis. Traders with short-term perspective can continue holding their long positions with altered stop-loss at Rs 860 levels.

The stock can test its immediate resistance at Rs 900 and a strong move above this will encounter resistance at Rs 920 in the week ahead. Key resistance above Rs 920 is at Rs 954. Immediate supports for the stock are positioned at Rs 850, Rs 830 and Rs 810.

State Bank of India (Rs 1,893.4)

SBI was very volatile and ended flat for the week, after registering an intraweek low at Rs 1800. The stock continues to test its significant support at Rs 1900 levels. It is trading well below Rs 50 and 200-day moving averages. The daily moving average convergence divergence and daily price rate of change indicators are showing positive divergence indicating near-term trend reversal is in the offing. An up-move from this support level can push the stock higher to Rs 2,000 or Rs 2,065 in the upcoming week.

Nevertheless, the stock’s short-term trend will remain down as long as it trades below Rs 2186 levels. Medium-term trend has been down for the stock since its January peak of Rs 2,250 levels. Only a decisive up-move beyond Rs 2,300 will alter the stock’s downtrend and push it northwards to Rs 2,425 levels.

Strong decline below Rs 1900 will reinforce the bearish momentum and the stock can retest its key support at Rs 1800 levels once again in the medium-term. Next support is at Rs 1690 levels.

Infosys (Rs 2,802.7)

Infosys skyrocketed 11 per cent with an upward gap, accompanied by extraordinary volume following its June 2013 quarter results announcement and dollar revenue guidance on Friday. We call this a breakaway gap and the downward gap formed in mid-April 2013 as exhaustion gap. For the week, the stock has gained 14 per cent. Since late-April low of Rs 2190, the stock has been on a medium-term uptrend. The stock’s recent surge has decisively breached its 200-day moving average and is hovering well above 50 and 200-day moving averages.

The daily and weekly relative strength indices have entered the bullish zone from the neutral region. Short-term traders can continue to hold their long positions with stop-loss at Rs 2,700 level. Medium-term investors can hold with stop-loss at Rs 2350 levels. Near-term targets are Rs 2900 and Rs 3000.

Conclusive breakthrough of Rs 3000 will pave the way for a medium-term rally to Rs 3225 levels. Immediate supports for the stock are positioned at Rs 2600, Rs 2500 and Rs 2350 levels.

Tata Steel (Rs 262.8)

The stock was choppy and declined marginally, Rs 2 in the week ago. Both medium and short-term trends are still down for the stock. The stock is trading well below its 50 and 200-day moving averages. The daily relative strength index has entered the neutral region from the bearish zone. Weekly RSI is hovering in the oversold levels. We restate that short-term traders should tread with caution in the forthcoming week. Significant resistances are at Rs 282, Rs 290, Rs 300 and Rs 320.

A strong move above Rs 320 levels is needed to alter the stock’s short-term downtrend. Key important support is at Rs 250 and next is at Rs 230 levels.

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