SBI (₹2,172.7)

The stock zoomed 6 per cent in the previous week, decisively breaching its key immediate resistance at ₹2,100 levels. This up move has reinforced the stock’s bullish momentum. It is now heading towards the price target of ₹2,200--very close to its current price, and then to ₹2,250. Traders with a short-term perspective can consider holding their long positions with a stop-loss at ₹2,100. Since taking support at ₹1,450, in February 2014, the stock has been on a medium-term uptrend. The short-term trend is also up. The stock is hovering way above its 50- and 200-day moving averages. Medium term outlook will stay bullish as long as the stock trades above ₹1,800. Investors with a medium-term perspective can consider holding the stock with a stop-loss at ₹1,900. A strong breach of ₹2,250 can push the stock northwards to its key long-term resistance at ₹2,350 and then to ₹2,400 levels.

ITC (₹345.5)

ITC went up marginally by 1.6 per cent, last week. Its near-term trend has been sideways ranging between ₹340 and ₹355, since early April 2014. Therefore, traders should tread with caution as long as the stock trades in this sideways range. A downward breach of ₹340 will reinforce bearish momentum and drag the stock down to ₹333 and ₹325. In such a scenario, fresh short positions can be initiated with a stop-loss at ₹340 levels. Further decline below ₹325 will eventually drag the stock down to ₹310 in the medium-term. Conversely, an upward breach of ₹355 can take the stock northwards to ₹365 in the short- to medium-term. Investors with a medium term perspective can buy the stock only on a strong break out of ₹355. The stock can then trend to ₹380 and then ₹400 in the ensuing months.

Infosys (₹3,105.4)

Last week, Infosys slumped over 5 per cent initially. But Friday’s marginal gains trimmed its weekly loss to 3.5 per cent. Both the medium and short-term trends are down. Nevertheless, the stock is now nearing a key long-term support as well as 50 per cent Fibonacci retracement level of prior up move at ₹3,000. The daily indicators are showing signs of strength. Investors with a medium-term perspective with high risk appetite can consider buying the stock with a stop-loss at ₹2,980 levels. The medium-term targets are ₹3,450 and ₹3,550. However, traders with a short-term perspective should remain cautious in the week ahead. The stock can remain confined between ₹3,000 and its immediate key resistance at ₹3,200. Only a decisive rally above ₹3,200 will push the stock higher to ₹3,300 or ₹3,350 in the short-term. Key supports below ₹3,000 are pegged at ₹2,900 and ₹2,800.

Reliance Industries (₹997.3)

RIL skyrocketed 7.4 per cent in the previous week, conclusively breaching its significant immediate resistance at ₹970. Moreover, this up move has decisively breached the stock’s long-term resistance band between ₹950 and ₹960. The medium as well as short-term trends are up. The stock is trading well above its 50- and 200-day moving averages. The indicators in the daily chart have entered the bullish zone implying upward momentum. Those in the weekly chart are also featuring in the bullish zone backing the stock’s uptrend. There has been an increase in daily volumes over the past five trading sessions. Traders with a short-term horizon can hold the stock with a stop-loss at ₹970. Targets are ₹1050 and ₹1065 levels. Key supports below ₹970 are pegged at ₹950 and ₹928. Investors with medium-term horizon can hold the stock with revised stop-loss at ₹890 levels.

Tata Steel (₹416.7)

The stock gained 6.7 per cent, rebounding from its key immediate base at ₹390 in the past week. With this up move, the stock appears to have resumed its short-term uptrend. The stock is trading way above its 50- and 200-day moving averages. The indicators in the daily chart are on the brink of entering the bullish zone from the neutral region. Trader with a short-term horizon can consider holding the stock with a stop-loss at ₹400. The stock can extend its current rally to ₹430 and then to ₹440 in the upcoming weeks. However, to alter its medium-term sideways consolidation trend, the stock needs to decisively breach its upper boundary at ₹440 levels. This will pave way for an up move to ₹470 or ₹480 in the medium-term. Significant supports below ₹400 are placed at ₹390 and then at ₹370 levels.

Snapshot

1 SBI breaks a key resistance and reinforces bullishness.

2 ITC is in a short-term sideways consolidation.

3 Infosys nearing an important support level.

4 RIL breached its long-term resistance emphatically .

5 Tata Steel resumes its short-term uptrend.

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