SBI (271.7)

SBI slumped 8.3 per cent last week. The stock tumbled breaking below a crucial support level of ₹280. The sharp fall last week has intensified the downtrend. The region between ₹280 and ₹282 will now act as a strong resistance and cap the upside in the short term. Also, the level of ₹285 is a significant resistance which has to be breached for the outlook to turn positive. But such a break looks unlikely now.

 

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Intermediate  bounce to this resistance may attract fresh sellers coming into the market. Immediate support is at ₹269. If SBI sustains above this support, a relief rally to ₹280 or ₹282 is possible. In such a scenario, a range-bound move between ₹269 and ₹282 can be seen for some time. However, the outlook will continue to be bearish. An eventual break below ₹269 will take the stock lower to ₹265 or ₹260. A strong break below ₹260 will increase the likelihood of the stock tumbling towards ₹251 over the medium term. Traders with high risk appetite can go short on rallies at ₹278 and ₹281. Stop-loss can be placed at ₹288 for the target of ₹265.

ITC (₹266.35)

ITC fell 1.8 per cent last week. However, the support at ₹265 has held very well in limiting the downside all through the week. The stock tested this support on Wednesday and remained range-bound above ₹265 for the rest of the week. If ITC sustains above ₹265, a range-bound move between ₹265 and ₹274 can be seen in the short term. Since the broader markets remain weak and vulnerable for further fall, the upside in

 

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ITC could be capped in the short term. If the sell-off in the broader markets resume in the coming days, ITC can break below ₹265. Such a break will take the stock lower to ₹262 initially. Further break below ₹262 can take the stock lower to ₹260 or ₹257. Cluster of supports are poised in the broad ₹257-260 region. The pace of fall in ITC could be slow. Only a strong break below ₹257 will turn the outlook to negative. Such a break, though less likely at the moment, will increase the possibility of the stock tumbling towards ₹250 thereafter. Investors can hold the long positions and accumulate at ₹260. Retain the stop-loss at ₹220.

Infosys (₹1,124.8)

Infosys got a breather and witnessed a relief rally last week. The stock recovered all the loss made initially by bouncing from the low of ₹1,091.7 and closed 1.2 per cent higher for the week. Resistance is at ₹1,141 can be tested in the near term. If Infosys manages to surpass this hurdle, the current upmove can extend towards ₹1,156 or ₹1,158. Further rally beyond ₹1,158 looks unlikely at the moment.

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A downward reversal from ₹1,158 or from ₹1,141 will see the corrective fall that has been in place since late January resuming. The stock can fall to ₹1,080 — the next crucial support. A break below ₹1,080 can drag Infosys lower to ₹1,050 or ₹1,030. However, indicators on the charts suggest that the uptrend is intact. The 21-week moving average is on the verge of crossing above the 100- and 200-week moving average. This is a bullish signal, indicating that the downside in the stock could be limited. Long-term investors can hold the long positions. Medium-term investors who have bought at ₹1,130 and ₹1,100 can accumulate at ₹1,085.

RIL (₹921.7)

Contrary to an expected fall, RIL reversed higher last week. The stock sustained above ₹900 and surged 2.6 per cent last week. The stop-loss on the short positions recommended last week was hit during this upmove. Immediate support is at ₹917 and the next key support is at ₹910. If RIL manages to sustain above these supports, a rise to ₹950 or ₹960 is possible. Whether the stock breaks above ₹960 or not will be key in determining the next move.

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A decisive weekly close above ₹960 will bring fresh momentum. Such a break will increase the likelihood of the stock rallying towards ₹1,000 thereafter. But if RIL fails to breach ₹960 and reverses lower, it can fall to ₹930. Further break below ₹930 will increase the possibility of the stock revisiting ₹900. The level of ₹890 is a crucial support. A strong break and decisive close weekly below ₹890 will leave the stock under pressure. The stock can thus fall to ₹845 on the back of profit booking. Since the stock has been stuck in a broad sideways range, the fall after breaking below ₹890 could be swift.

Tata Steel (₹688.3)

Tata Steel opened the week with a wide gap-up of ₹35, but failed to retain the momentum thereafter. The stock made a high of ₹720.6 on Wednesday and fell consistently for the rest of the week. The immediate outlook is mixed. The price action in the coming week will need close watch to get a clear cue on the next move. Support for the stock is at ₹670, which is likely to be tested while the stock remains below ₹700. A strong break below ₹670 will increase the likelihood of the stock tumbling towards ₹645 or even ₹630 on the back of profit booking. On the other hand, if Tata Steel manages to reverse higher from the support ₹670, it can move up to ₹710 or ₹720 again. A strong break above ₹720 will ease the downside pressure and take the stock further higher to ₹750. Investors hold the long positions and retain the stop-loss at ₹630. Traders who have taken short positions last week at ₹710 can hold it with a revised stop-loss at ₹695. Move the stop-loss further lower to ₹685 as soon as the stock moves down to ₹675.

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