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

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