High Five stocks: SBI, ITC, Infosys, Reliance Ind, Tata Steel





SBI (₹305)



The stock skyrocketed 9.4 per cent, breaching a key resistance around ₹275 (stock split adjusted) last week. Further, the stock has surpassed its next important resistance at ₹300. The medium- and short-term trends are up. The medium-term uptrend will be intact as long as the stock trades above ₹235. The indicators in the daily and weekly chart feature in the bullish zone, showing optimism. Investors with short- and medium-term perspective can stay invested and buy the stock with a stop-loss at ₹270 levels. The short-term uptrend is backed by good volume. Targets are at ₹310 and ₹317 levels. A near-term corrective fall can find support at ₹295, ₹290 or at ₹280 levels. Only a decisive fall below ₹270 will mitigate the stock’s short-term uptrend.





ITC (₹376.2)



The stock of ITC surged almost 2 per cent last Monday. This rally has strengthened the stock's short-term uptrend that has been in place from the mid-October low of ₹343. Moreover, with this, the stock appears to have decisively resumed its medium-term uptrend. Nevertheless, the stock faces a key long-term resistance at ₹380. The inability to breach this level will keep the stock moving sideways in the band between ₹364 and ₹380. A decisive break will push the stock higher to ₹387 and then to ₹395 levels in the short- to medium-term. Traders with a short-term perspective can hold the stock with a stop-loss at ₹370. Investors with a medium-term perspective can buy on dips with a stop-loss at ₹355. Significant supports below ₹364 are at ₹355, ₹350 and ₹345 levels.



Infosys (₹4,146.1)



Last week, the stock of Infosys tested its significant resistance at ₹4,200 and fell 1 per cent. The short-term uptrend is losing momentum. The indicators such as relative strength index and price rate of change on the daily chart are displaying negative divergence, implying a possible trend reversal. Therefore, investors can consider taking partial profits off the table at this juncture and remain on the sidelines for a medium-term direction. A fall below the immediate support at ₹4,100 can pull the stock down to ₹3,950 and then to ₹3,800 levels. The medium-term uptrend will be in place as long as the stock trades above ₹3,550. Investors can hold their remaining portfolio with a stop-loss at ₹3,550. Key resistance above ₹4,200 is at ₹4,250 and ₹4,300.



RIL (₹997.4)



The stock surged almost 3 per cent last week, ending its corrective downtrend. However, it faces a key resistance at ₹1,000 which needs to be breached for a rally to ₹1,020 levels. The stock trades well above its 50- and 200-day moving averages. Traders with a short-term perspective can buy the stock on declines with a stop-loss at ₹977 levels. The stock has significant support in the band between ₹950 and ₹960. A fall below this can find support at ₹920 levels. To alter the stock’s medium-term downtrend that has been in place, it needs to emphatically break the key resistance level of ₹1,040. Investors with a medium-term perspective can accumulate the stock above ₹1,000 with a stop-loss at ₹950. Targets on a break of ₹1,040 are ₹1,070 or ₹1,100.

Tata Steel (₹462.7)

After testing the key resistance band between ₹490 and ₹500, the stock fell 3.4 per cent last week. Now, it is testing the immediate support as well as 200-day moving average around ₹460 levels. A fall below this level will keep the stock moving sideways in the broad range of ₹440-500. Only a break out of this range will decide the stock’s next medium-term trend. The indicators in the daily and weekly chart hover in the neutral region without any clear direction. Immediate supports are placed at ₹460, ₹450 and ₹440. A tumble below ₹440 can reinforce the bearish momentum and drag the stock down to ₹426, ₹410 and ₹400 in the medium-term. Conversely, a breakthrough of ₹500 can take the stock higher to ₹510 or ₹520.

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