The stock was volatile and continued to test its significant support range between Rs 690 and Rs 700 in the last week. We restate that an upward reversal from this support band will be a corrective up move and the stock can encounter resistance at Rs 720 in the short-term.

Failure to surpass Rs 720 will jail the stock between Rs 671 and Rs 720 for a while, before the stock trends in a clear direction. Subsequent resistances are at Rs 733 and Rs 755.

Medium-term trend will remain bearish as long as the stock trades below Rs 790, which is a crucial trend-deciding level. Even so, we don't rule out the possibility of the stock declining and testing Rs 671 again. Important support below Rs 671 is at Rs 650.

Infosys (Rs 2,372)

Infosys prolonged its sideways movement above the key support level around Rs 2,305. For the past two weeks the stock has been moving sideways in a narrow band between Rs 2,305 and Rs 2,425. Traders with short-term perspective should tread with caution in the ensuing week.

Fresh long position is recommended only if the stock manages a firm close above Rs 2,425. In that case, the stock can rally to Rs 2,485 and to Rs 2,540, floor of the recent gap. Next resistance is at Rs 2,600.

However, a downward penetration of Rs 2,305 will pull the stock down to Rs 2,270 or to Rs 2,200. To alter the medium-term downtrend, the stock needs to make a strong move above Rs 2,600.

State Bank of India (Rs 2,005)

SBI advanced 3 per cent with good volumes in the previous week. The stock is testing its 200-day moving average around Rs 1,980. Short-term traders can consider holding their long positions with stop-loss at Rs 1,970. Upside targets are Rs 2,070 and Rs 2,130.

However, the stock has to clear the significant hurdle at Rs 2,130 to revise its medium-term bearish trend and lift the stock higher to Rs 2,220.

Immediate supports for the stock are positioned at Rs 1,940 and Rs 1,900.

Support below Rs 1,900 is in the Rs 1,820 and Rs 1,850 range. An emphatic dive below Rs 1,820 can reinforce the stock's medium-term bearish trend and pull the stock downwards to Rs 1,776 and then to Rs 1,715.

Tata Steel (Rs 408.2)

After testing the important long-term support band between Rs 390 and Rs 400, the stock managed to gain 2 per cent last week, in the midst of volatility.

The stock has formed a piercing line candlestick pattern in the weekly charts, a bullish reversal pattern.

Further, the stock's current upward reversal is helped by the positive divergence in daily relative strength index and price rate of change indicator.

Traders with short-term perspective can consider buying the stock with stop-loss at Rs 398.

Target is Rs 420. A strong close above Rs 420 will take the stock higher to Rs 440 and to Rs 450 in the forthcoming weeks.

sInability to surpass Rs 420 will contain the stock to hovering between Rs 390 and Rs 420. Significant supports below Rs 390 are at Rs 374 and Rs 362.

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