SBI (₹327.3)

The stock of SBI extended its rally by gaining 3.7 per cent last week. It is currently testing a significant long-term resistance at ₹327. The stock hovers well above its 21- and 50-day moving averages. Only a decisive breakout from this resistance level will indicate resumption of its medium-term uptrend. Moreover, the stock will move out of its sideways consolidation range. In such a scenario, traders with a short-term view can initiate long positions with a stop-loss at ₹322. The stock can trend higher to ₹340 or ₹350 in the short- to medium-term. The medium-term trend is bullish. Investors can hold the stock with a stop-loss at ₹290. If the stock fails to breach the resistance level at ₹327, a transitory fall to its immediate support levels is likely. The supports are at ₹320, ₹310 and ₹300.

ITC (₹349.2)

After gaining 4 per cent and recording an intra-week high at ₹373, the stock lost momentum and tumbled, closing the week with a 2.8 per cent fall. The short-term downtrend will remain intact as long as the stock trades below ₹370 levels. The stock is now testing the key support at ₹350 levels. A conclusive break of this base level will strengthen the downtrend and pave the way for the stock to decline to ₹340 levels. Subsequent important support is at ₹330 levels. Conversely, the stock needs to strongly rally above ₹370 to alter the bearish outlook and take it higher to ₹378 and ₹390 levels in the medium term. Traders with a short-term perspective can initiate fresh short positions only if the stock falls strongly below ₹350. The stop-loss can be placed at the level of ₹358.

Infosys (₹2,214)

Last week, the stock rallied almost 5 per cent. However, it is now testing significant resistance at ₹2,200 levels. Only a decisive breakthrough of this resistance can take the stock higher to ₹2,300 level in the short term. Since mid-December 2104, the stock has been in a short-term uptrend. As long as it trades above its key support level of ₹2,020, the short-term uptrend will stay in place. The indicators on the daily chart feature in the bullish zone, backing the uptrend. Traders with a short-term outlook can hold their long positions with a revised stop-loss at ₹2,120. But an emphatic decline below ₹2,100 can pull it down to ₹2,020 levels. Next supports are at ₹1,950, ₹1,900 and ₹1,800. Investors with a medium-term perspective can hold the stock with a stop-loss at ₹1,800.

RIL (₹886.9)

The Reliance Industries stock encountered resistance at ₹900 and gave away some of its gains to close the week 2 per cent up. Further declines can find support at ₹840 — its significant long-term support. The stock can pause at its immediate support at ₹860 levels. On the upside, it needs to conclusively break the key resistance at ₹900, which can push the stock to ₹925. Next resistances are at ₹945 and ₹960. Traders should be cautious and initiate long positions only on a conclusive break of ₹900 with a stop-loss at ₹890. Both the daily and weekly relative strength indices feature in the neutral region. A fall below ₹840 can drag the stock to ₹820 and ₹800. Investors with a medium-term horizon can stay on the sidelines and buy the stock on a strong rally above ₹925 level.

Tata Steel (₹402.6)

After taking support at around ₹375 recently, the stock started to move up. In the past week, it surged 5 per cent with good volumes, closing above its 21-day moving average. The stock shows signs of trend reversal, as the daily moving average convergence divergence indicator shows positive divergence. The daily relative strength index has entered the neutral region. The stock needs to breach its initial resistance at ₹420 for an upmove to ₹430 and ₹440 levels in the short- to medium-term. Traders with a short-term perspective can make use of dips to buy the stock with a stop-loss at ₹390 levels. On the downside, a fall below ₹390 will strengthen the stock’s medium-term downtrend and pull it lower to ₹375. The next key support is at ₹355.

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