Resistance caps the upside in SBI (₹251.2)
SBI failed to breach the key resistance level of ₹262 last week. The stock reversed sharply lower after making a high of ₹265.25 and closed 3.3 per cent down for the week. Immediate support is at ₹248. If SBI manages to sustain above this support, a bounce-back move to ₹262 is possible again.
A strong break above ₹262 will ease the downside pressure and take the stock higher to ₹270 initially. Further break above ₹270 will then increase the likelihood of the stock targeting ₹283 or ₹285. On the other hand, if SBI declines below the immediate support at ₹248 in the coming days, it can come under more pressure. Such a break can drag it to the crucial support level of ₹240. Whether SBI breaks below ₹240 or not will decide the next move. A bounce from ₹240 can keep it range-bound between ₹240 and ₹260 for some time. But a strong break and a decisive close below ₹240 can bring renewed pressure on the stock. Such a break will increase the likelihood of the stock tumbling towards ₹200 or ₹190 over the medium term.
ITC may remain range-bound (₹260.8)
ITC rallied as expected to test the resistance at ₹266. But it failed to sustain higher and came-off sharply from ₹268.2 and closed the week on a flat note. Inability to bounce from the current levels can keep the stock under pressure. Support is at ₹258. A break below it can drag the stock lower to ₹255 or even ₹250 in the short term. The region between ₹251 and ₹250 is a crucial support that has been limiting the downside since November. An upward reversal from this support region can take ITC higher to ₹260 and ₹265 again. In such a scenario, the stock can remain range-bound between ₹250 and ₹265 for some time. The stock will come under pressure only if it breaks below ₹250 decisively. Such a break can take the stock lower to ₹245 or ₹244 initially. Further break below ₹244 will increase the likelihood of the stock tumbling towards ₹235 or even lower. On the other hand, if ITC bounces from the immediate support at ₹258, it can move up to ₹265 or ₹267. Investors can hold the long positions and retain the stop-loss at ₹220
Infosys maintains its uptrend (₹1,169)
Infosys snapped its three-week fall as the psychological support at ₹1,100 held well. The stock made a low of ₹1,105 and surged to close the week 3.3 per cent higher. This upward reversal keeps the ₹1,100-₹1,200 sideways range intact. Infosys has been stuck in this range since February. As long as the stock remains above the ₹1,150-₹1,140 support zone, the possibility is high of it extending its upmove towards ₹1,200. Inability to break above ₹1,200 can drag Infosys lower to ₹1,150 or even lower. In such a scenario, the stock can remain range-bound for some time. But if Infosys manages to breach ₹1,200 decisively, it can gain fresh momentum. Such a break can take the stock higher to ₹1,250 or ₹1,270. It will also increase the possibility of the stock targeting ₹1,350 or even higher levels over the long term. The stock will come under pressure only if it breaks below the ₹1,100-₹1,090 support
Key resistance ahead for RIL(₹938.85)
RIL extended its rally for the second consecutive week. The stock surged 3.2 per cent in the past week. The near-term view remains positive. Support is in the ₹925-₹920 region. The stock can extend its current upmove and test the crucial resistance level of ₹960 in the coming days. Inability to break above ₹960 and a subsequent pull-back move will take the stock lower to ₹920. In such a scenario, the broader ₹870-₹960 sideways range will remain intact. RIL has been stuck in this range for a prolonged period of time. On the other hand, the stock will gain fresh momentum if it manages to breach ₹960 decisively. Such a break will increase the likelihood of the stock rallying towards ₹1,000 and ₹1,020 in the coming weeks. The outlook will turn negative only if the stock breaks below ₹870. But such a break look less probable at the moment. Traders who have taken long positions last week can hold it with a revised stop-loss at ₹920 and target of ₹955. Move the stop-loss further higher to ₹938 as soon as the stock moves up to ₹945.
Tata Steel lacks strength (₹593.3)
Tata Steel inched higher for the third consecutive week. The stock was up 1.5 per cent. Immediate support is at ₹588 — the 21-day moving average that is likely to be tested in the initial part of the week. An upward reversal from there will see the current rally extending towards ₹620 or even ₹630 in the coming weeks. Further break above ₹630 looks less likely now as fresh sellers may emerge at higher levels. A pull-back fromthe level of ₹630 can drag the stock to ₹600 or even lower levels thereafter. On the other hand, if Tata Steel declines below the 21-day moving average (₹588) support, it can fall to ₹570 or ₹560. Further break below ₹560 will then increase the likelihood of the stock falling towards ₹550 or ₹545. The region between ₹550 and ₹545 is a key medium-term support. A break below ₹545 can take the stock lower to ₹535 initially. Further break below ₹535 will then increase the possibility of the stock tumbling towards ₹510 or ₹500 over the medium term.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.