SBI (₹2,606)

Last week, SBI declined 4.6 per cent, registering more than 3 per cent fall on Friday alone. However, the stock is hovering just above its key support level of ₹2,500. With the daily indicators and oscillators showing signs of bearishness, there is a possibility of breaching the key support at the level of ₹2,500 in the near term. In such a situation, traders with a short-term perspective can initiate fresh short position with a stop-loss at ₹2,500. Targets are at ₹2,400 and ₹2,300, respectively. But, if the key support at ₹2,500 holds, then the stock can move sideways in the band between ₹2,500 and ₹2,850 for a while. On the upside, the stock needs to close above the level of ₹2,850 to strengthen its medium-term uptrend and take it higher to ₹3,000. Subsequent important resistance is at ₹3,100 levels. Investors with a medium-term perspective can stay invested with a stop-loss at ₹2,250.

ITC (₹333.7)

ITC moved sideways and closed on a negative note in the previous week. The stock is testing its 200-day moving average poised at ₹332. Since May 2014 peak of ₹386, the stock has been on a short-term downtrend. This downtrend will remain intact as long as the stock trades below the ₹355 levels. The stock is hovering well below its 21- and 50-day moving averages. Moreover, the indicators in the daily chart are trending down, backing the stock’s downtrend. Traders with short-term perspective can initiate short position with a stop-loss at ₹340. The stock can breach its 200-day moving average and decline to ₹325 or even ₹310 in the coming week. Conversely, only an emphatic rally above ₹355 will alter the stock’s downtrend and take it higher to ₹365 and then to ₹375. Investors with a medium-term perspective can continue to remain on the sidelines.

Infosys (₹3181.6)

Infosys extended its gains by closing 6 per cent higher, accompanied by good volumes, last week. This rally has helped the stock to fill its recent gap during its fall in late May. However, the stock is finding difficulty in surpassing its key resistance at ₹3,200. Next important resistance is at ₹3,350, which is a short-term trend deciding level. A decisive upmove from this level can reverse the medium-term downtrend that has been in place since the early March peak of ₹3,840. Such a rally can provide buying opportunity for investors with medium-term horizon. The stock can trend higher to subsequent resistances at ₹3,450 and ₹3,550 in the coming weeks . Traders with a short-term perspective should tread with caution if the stock fails to move above its key resistance at ₹3,350. Key supports for the week ahead are pegged at the levels of ₹3,050, ₹2,900 and ₹2,800, respectively.

Reliance Ind (₹1,081.9)

RIL declined 3.4 per cent last week, indicating initial signs of bearishness. Nevertheless, the stock has a key immediate support at the ₹1,050 levels. A fall below this level will reinforce further bearishness and drag the stock down to ₹1,033 and then to ₹1,000 in the near term. Traders with a short-term perspective can initiate short position on such a decline with a stop-loss at ₹1,050 . The indicators in the daily chart have entered the neutral region from the bullish zone, while the weekly chart indicators are reversing downward in the bullish zone. Key resistances are placed at ₹1,120 and ₹1,150 levels. Only an emphatic rally above ₹1,150 can take the stock higher to ₹1,200 in the medium term. Investors with a medium-term perspective can take partial profits off the table at this juncture and continue to hold their long positions with a stop-loss at the level of ₹925.

Tata Steel (₹525.7)

The stock declined 6 per cent after encountering resistance around ₹580 last week. At this resistance level, the stock has formed a bearish engulfing candlestick pattern, indicating that the short-term uptrend has come to an end. The indicators in the daily charts are on the brink of entering the neutral region from the bullish zone, and the weekly indicators are correcting from the over-bought territory. The upside is capped. Traders with a short-term perspective can consider initiating short position with a stop-loss at ₹537. Targets are ₹500 and ₹480. Next important support is placed at ₹450. Investors with medium-term perspective can consider taking partial profits off the table at this juncture and hold it with a stop-loss at ₹430. Significant resistances to note for the week ahead are at ₹550 and ₹580. An important long-term hurdle is at ₹600.

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