The stock advanced marginally gaining Rs 9 in the previous week after taking support at Rs 840. However, the short-term trend continues to be down as long as the stock trades below the important resistance band between Rs 880 and Rs 890. Before reaching this band, the stock can encounter immediate resistance at Rs 870.

Only a decisive breach of these resistances will pave the way for an upmove to Rs 925 in the medium term.

Conversely, a strong fall below Rs 840 will reinforce the stock’s downtrend and drag it lower to Rs 820 and then to Rs 800 in the coming weeks.

Therefore, short-term traders should tread with caution in the ensuing week. Important medium-term support below Rs 800 is at Rs 770.

State Bank of India (Rs 1,821.5)

Following a few weeks of choppy movements, the stock staged a strong 4.7 per cent gain last week. This upmove signals that its nascent uptrend that started from the September 2013 low of Rs 1,455 remains in place.

Traders with a short-term perspective can consider extending their long holdings with a stop-loss at Rs 1,775 levels. Indicators on the daily chart are on the brink of entering the bullish zone implying upward momentum.

The stock can meet resistance at Rs 1,900 and then at Rs 1,925 in the weeks ahead. But, to alter its medium-term downtrend, the stock needs to surpass its important resistance at Rs 2,000. After Rs 2,000, the next important resistance is at Rs 2,100.

Significant immediate supports are positioned at Rs 1,700 and Rs 1,600. An emphatic downward breakthrough of Rs 1,600 will pave the way for a decline to Rs 1,500 in the medium term.

Infosys (Rs 3,353.5)

The stock was very volatile in the previous week. It formed a spinning top candlestick pattern on the weekly chart, signalling indecisiveness.

Moreover, the stock continues to move sideways in the wide range between Rs 3,250 and Rs 3,450. Investors with a short-term perspective can hold the stock as long as it trades above Rs 3,250 levels.

A strong fall below this level will have negative connotation for the stock and it can decline to Rs 3,150 or even to Rs 3,000 levels.

Medium-term investors can prolong their long positions with a stop-loss at Rs 2,800 levels. A decisive upward break through the upper boundary will take the stock northwards to Rs 3,500 and to Rs 3,600 in the ensuing months. Immediate resistance is pegged at Rs 3,400 and support at Rs 3,295 levels.

Tata Steel (Rs 400.8)

Tata Steel gained 2 per cent last week, extending its medium-term bull-run. Nevertheless, it is now testing an important resistance in the range between Rs 400 and Rs 408. Only an emphatic breakout of the range will strengthen the stock’s uptrend. Indicators on the daily chart are losing their bullish momentum and are plotting a negative divergence signalling that short-term trend reversal is in the offing. Further, daily volumes are also declining.

Hence, traders should tread with caution in the ensuing week.

A downward reversal from the aforesaid resistance band can witness a short-term corrective decline to Rs 380 or to Rs 370 levels. But, to mitigate the short-term uptrend, the stock needs to decline below Rs 320 levels.

Upward breakout of Rs 408 will accelerate the stock to the Rs 440-450 band in the medium term.

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