The stock continues to trade above a key support level of ₹2,500. The indicators and oscillators on the daily chart have entered the negative territory. The stock can breach the support at ₹2,500 and extend its downfall. Traders with a short-term perspective can initiate fresh short positions with a stop-loss at ₹2,500. The near-term targets are at ₹2,400 and ₹2,300 levels. Failure to breach that support level can confine the stock moving sideways in the ₹2,500-2,850 range. Only a decisive rally above ₹2,850 will reinforce bullish momentum and push the stock northwards to ₹3,000 levels and then to ₹3,100. Investors with a medium-term perspective can consider taking partial profits off the table now and remain invested with a stop-loss at ₹2,250.

ITC (₹335.9)

Last week the ITC stock prolonged its narrow sideways movement, testing its 200-day moving average at ₹332 levels. As long as the stock trades below the level of ₹355, its short-term downtrend will remain intact. However, traders should desist trading in the stock as long as it hovers in the narrow range between ₹330 and ₹340. Only a strong fall below ₹330 will reinforce bearishness and drag the stock down to ₹325 or even to ₹310 in the short term. On the upside, the stock needs to breach the upper boundary to witness a corrective rally to ₹355. Only a strong rally beyond ₹355 can reverse the stock’s downtrend and pave the way for an upmove to ₹365 and then to ₹375. Investors with a medium-term perspective can remain on the sidelines for now.

Infosys (₹3,315.6)

The stock continued its bullish momentum and surged 4 per cent last week. But, it now faces key resistance ahead at its 200-day moving average at ₹3,335 and short-term trend deciding level at ₹3,350. An emphatic rally above those resistance levels will alter the stock’s medium-term downtrend that has been in place since the March 2014 peak of ₹3,840 levels. Investors with a medium-term perspective can buy the stock after a strong breach of ₹3,350. Even traders with a short-term perspective can buy with a stop-loss at ₹3,335. The targets are ₹3,450 and ₹3,550. The next key resistance is at ₹3,650. But, inability to breach ₹3,350 will lead to a sideways movement in the stock. Significant supports are placed at ₹3,150, ₹3,050 and ₹2,900.

Reliance Ind (₹1,037.8)

Last week the stock fell 4 per cent, breaching its key immediate support at ₹1,050 levels. The stock’s decline has conclusively breached its 21-day moving average and strengthened the short-term downtrend. Traders with a short-term horizon can initiate fresh short positions and hold existing short positions with a stop-loss at ₹1,050 levels. The stock can decline to ₹1,000. Further decline below the psychological level of ₹1,000 can drag the stock down to ₹970. Conversely, a strong up move above ₹1,060 can witness a corrective rally to ₹1,090 or ₹1,105. The next key resistances are placed at ₹1,120 and ₹1,150. A strong breakout of ₹1,150 is required to reinforce bullishness and take the stock higher to ₹1,200 in the medium term.

Tata Steel (₹519.7)

Tata Steel fell marginally last week, and is hovering around its 21-day moving average at ₹520. The indicators on the daily chart have entered the neutral region from the bullish zone while the weekly indicators are reversing from the overbought levels. Volumes have been decreasing over the past two weeks. As the upside in the stock is limited, traders with a short-term horizon can consider initiating short positions with a stop-loss at ₹534. The targets are ₹500 and ₹480. Subsequently, key support is pegged at ₹450. Investors with a medium-term horizon can consider holding their long positions with a stop-loss at ₹430 levels. Important immediate resistances are placed at ₹540, ₹550 and then at ₹580.

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