The stock of SBI witnessed a choppy session and closed the week by gaining 2 per cent. It continues to move sideways in a wide range between ₹2,500 and ₹2,850. Within this band, the stock has key immediate resistance at ₹2,750 and support at ₹2,580 levels. Traders with a short-term horizon should tread with caution as long as the stock trades in a narrow band between ₹2,580 and ₹2,750. A breach of ₹2,750 can push the stock higher to its next long-term resistance level of ₹2,850. However, a conclusive breakthrough of this level is required to strengthen the bullish momentum and take the stock higher to ₹3,000 and ₹3,100 levels in the medium-term. Investors with a medium-term perspective can stay invested with a stop-loss at ₹2,250. On the downside, a decline below ₹2,500 will alter the short-term trend from sideways to bearish and pull the stock down to ₹2,400 and ₹2,300 in the coming weeks.

ITC (₹319.8)

After a sharp plunge last Monday, the stock witnessed small gains and ended the week by declining 4.8 per cent. This fall has conclusively breached its 200-day moving average as well as a key support at ₹330 levels. Short-term trend has been down for the stock from its May 2014 peak of ₹386. The stock is trading well below its 50- and 200-day moving averages. Traders can initiate fresh short position with a stop-loss at ₹330. The stock can decline to ₹310. A further fall below this level can drag the stock down to ₹300 and then to its long-term support at ₹285 in the forthcoming weeks. Investors with a medium-term perspective can stay on the sidelines. Conversely, a strong upmove above ₹330 will trigger an immediate rally and push it higher to ₹340 levels. An emphatic rally above ₹350 is needed to alter the short-term downtrend. Next key resistance is at ₹365.

Infosys (₹3,221.5)

After holding its crucial short-term trend deciding level at ₹3,350, Infosys fell 2.8 per cent last week. However, the stock is finding support at ₹3,200 and hovering around this level. Subsequent support is very near at ₹3,150 where 21- and 50-day moving averages are poised. The indicators on the daily chart are moving higher with a positive bias. An upward reversal from the current support zone can take the stock higher to ₹3,350 levels in the coming week. Traders with a short-term perspective can consider buying the stock with a stop-loss placed at ₹3,150. But, inability to breach ₹3,350 will lead to a near-term sideways movement. On the other hand, a strong fall below ₹3,150 can reinforce bearishness and pull the stock down to ₹3,050 or ₹2900 in the short-term. Investors with a medium-term perspective should consider buying the stock only on a decisive move above ₹3,350. The targets are ₹3,450 and ₹3,550.

Reliance Ind (₹1,013)

The stock resumed its short-term downtrend last week. It conclusively breached its 50-day moving average and fell 2.4 per cent. RIL is just trading above a key psychological support level of ₹1,000. A drop below this level will be cue for initiating fresh short position with a stop-loss at ₹1,000.

Targets are ₹970 and ₹950. Medium-term trend will be under threat only if the stock declines below the key support band between ₹940 and ₹950. On such a fall, medium-term investors can exit the stock and re-enter at lower levels.

Nevertheless, a strong rally above ₹1,060 can witness a corrective up move to ₹1,090 or ₹1,105. Subsequent hurdles are at ₹1,120 and ₹1,150. A strong breakout of ₹1,150 is required to reinforce bullishness and take the stock higher to ₹1,200 in the medium- term.

Tata Steel (₹519.5)

The stock was volatile and breached its 21-day moving average last week. The indicators on the daily chart are featuring in the neutral region while the weekly indicators continue to reverse downward from the overbought levels. Volumes on the daily chart have been decreasing over the past three weeks. These indicators signal that the upside in the stock is limited and near-term downtrend can strengthen in future. Traders with a short-term perspective can consider initiating short positions with a stop-loss at ₹537.

The targets are ₹500 and ₹480. Next significant support is placed at ₹450. Investors with a medium-term horizon can consider holding their long positions with a stop-loss at ₹430 levels. Important immediate resistances are placed at ₹540, ₹550 and then at ₹580.

Snapshot

SBI moves in a narrow range

ITC in a short-term downtrend

Infosys reversing higher from a key support

RIL holds above a crucial base

Tata Steel in a near-term downtrend

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