SBI (₹2,045.8)
SBI failed to gain momentum and extend its rally. The stock closed 1.8 per cent lower last week. A decisive weekly close above ₹2,100 is now needed to strengthen its uptrend. SBI can then target ₹2,200 and ₹2,250. Immediate support for the stock is in the ₹2,040-2,038 zone. A fall below ₹2,038 can turn the short-term outlook negative. Such a fall will increase the probability of a corrective fall. Short-term traders can go short if SBI falls below ₹2,038. Stop-loss can be placed at ₹2,070 for a target of ₹1,995. Key short-term supports are at ₹1,994 the 21-day moving average and ₹1,976 — the 100-week moving average. However, the medium-term outlook remains bullish with a double bottom on the chart. Declines to ₹1,995 and ₹1,976 can be cues for accumulating the stock. Medium-term investors can hold SBI with a revised stop-loss at ₹1,850.
ITC (₹340.1)
The stock of ITC declined 1 per cent last week. It is now poised just above a crucial support at ₹339.3. A reversal from this level would turn the short-term outlook bullish. This can take the stock higher to ₹350-355 initially and then to ₹367. On the other hand, a break below ₹339.3 can drag it lower to ₹333 and even ₹325. Short-term traders can wait to see whether the support at ₹339.3 holds, and then take positions . However the medium-term trend for ITC is up. Key support is at ₹310. Only a strong decline below this level will turn the outlook bearish. But the strong base formed near this level from November to February suggests that a breach of ₹310 is less likely. Medium-term investors can stay invested with a stop-loss at ₹290. Investors can use declines to buy into the stock, with a target of ₹380 and ₹400.
Infosys (₹3,219.8)
Infosys was stuck between ₹3,165 and ₹3,195 for most part of the week. However, the stock breached ₹3,195 in the final trading sessions to close 1.4 per cent higher last week. If it can sustain above ₹3,195, a corrective rally to ₹3,300 or even ₹3,320 is probable. Short-term traders with a high risk appetite can go long with a strict stop-loss at ₹3,180 for a target of ₹3,300. However, if the stock fails to gain strength and declines below ₹3,150, it can fall to ₹3,100 initially and then to ₹3,050 and ₹3,000. The short-term outlook will turn bullish only if Infosys records a strong close above ₹3,330. However, the medium-term outlook remains bullish. The psychological level of ₹3,000 is a key support. The stock can rise to ₹3,800 and even to higher levels in the medium term. Investors with a medium-term perspective can hold the stock with a stop-loss at ₹2,850.
Reliance Industries (₹928.3)
Reliance Industries fell for the second consecutive week and closed 2 per cent lower. The stock has also decisively broken its 21-day moving average, at ₹947. The short-term trend for the stock is down. However, significant support is coming up near ₹920. A reversal from this level can take the stock higher to ₹935. Short-term traders can go long in such a scenario with a strict stop-loss at ₹913 for a target of ₹935. On the other hand, if RIL closes below ₹920, the downtrend can extend to ₹914, the 38.2 per cent Fibonacci retracement level. The medium-term view remains bullish as long as the stock trades above its key supports at ₹910 and ₹890. Medium-term investors can start buying the stock near ₹920 levels. Investors can also accumulate more if RIL extends its fall to ₹910-₹890. Stop-loss can be placed at ₹885. A rise to ₹1,000-1,050 looks likely over the medium term.
Tata Steel (₹390.7)
Tata Steel failed to breach its resistance at ₹432 and tumbled 8.3 per cent last week. Immediate support is at ₹388, the 21-week moving average. A break below this level can drag the stock lower to ₹382, the 50 per cent Fibonacci retracement level. The subsequent target on a break below ₹382 is ₹371. On the other hand, if the immediate support at ₹388 holds , then a rise to ₹400 and ₹405 is possible. Short-term traders can take short positions if the stock reverses lower from ₹400-405. Stop-loss can be placed at ₹415.
The stock is trading in a sideways range between ₹330 and ₹435 in the medium term. A breakout of this range will decide the trend going forward. Within this range, the probability for a fall to ₹330 is likely, as the stock is reversing lower from its high of ₹432.7.
Snapshot
1 Support at ₹2,038 should cushion the fall in SBI
2 ITC is poised just above a crucial support level.
3 Infosys is poised for a corrective rally.
4 RIL is still in a short-term downtrend.
5 Short-term outlook is turning bearish for Tata Steel
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.