SBI, ITC, TCS, Reliance Industries, Tata Steel - High Five stocks :: Business Line

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SBI (₹304.2)

After a sharp 7.7 per cent fall, SBI bounced back and closed the week 2 per cent lower. The stock has formed a spinning top candlestick pattern in the weekly chart, implying indecisiveness. Short-term uptrend will remain intact as long as the stock trades above ₹290 levels. A fall below this level can pull the stock down to ₹280 and then to ₹272 in the short term. Traders should tread with caution and go short only on a fall below ₹290 levels. On the upside, key immediate resistances at ₹314 and ₹323 have to be broken decisively, for an up move to ₹330 and then to ₹340 levels in the medium term. As long as the stock trades above the significant support level of ₹250, the medium-term outlook will remain bullish. Investors with medium-term view can consider taking partial profits off the table on a fall below the ₹285 level.

ITC (₹369.5)

The stock failed to breach its key resistance at ₹400 last week and plunged 6.6 per cent. With this fall, the stock has decisively breached a key immediate support at ₹380. This has mitigated ITC’s short-term uptrend. The indicators and oscillators in the daily chart have entered the bearish zone and also signal a sell. The stock is trading way below its 21-day moving average. Investors with a medium-term perspective can take partial profits off the and hold the remaining with a stop-loss at ₹350. A strong fall below ₹350 can pull the stock down to ₹340 and ₹330 in the medium term. The near-term downtrend can extend in the coming weeks. The stock can fall to ₹363 and then to ₹354. Traders with a short-term perspective can on rallies with a stop-loss at ₹378 levels. Significant resistances are at ₹380, ₹390 and ₹400 levels.

Infosys (₹2,001.9)

After taking support at ₹1,900 levels, the stock bounced back smartly, gaining 3.3 per cent last week. However, the stock is now testing a key resistance at ₹2,000 levels. A conclusive rally above this level is needed to strengthen the near-term uptrend and take the stock higher to ₹2,050 and then to ₹2,070 levels. Traders can go long on such a breakthrough with a stop-loss at ₹1,980 levels. On the downside, a fall below the immediate support at ₹1,950 can pull the stock down to ₹1,900 levels. An emphatic breach of this level can pull the stock down to the support zone between ₹1,800 and ₹1,825 levels. The medium-term uptrend will stay in place as long as the stock trades above ₹1,800. A strong rally beyond the resistance level of ₹2,100 can take the stock higher to ₹2,200 in the medium term.

RIL (₹900.1)

Following a dip, RIL found support around ₹865 and reversed higher, gaining almost 2 per cent last week. This recovery is backed with good volumes. However, the stock appears to be in a corrective rally and needs to conclusively breach the immediate resistance at ₹920 levels. Traders with a short-term outlook should tread with caution in the coming truncated week. Inability to breach ₹920 can pull the stock down to ₹880 and then to ₹865 levels. Since a June 2014 peak of ₹1,132, the stock has been on a medium-term downtrend. As long as it trades below ₹1,000, the downtrend will remain in force. Next support below ₹865 is pegged in the band between ₹840 and ₹850 — asignificant medium-term base level. A strong rally above ₹920 will pave for an up move to ₹950 and ₹970 levels in the short term.

Tata Steel (₹405.2)

Tata Steel closed the week on a slightly positive note and is testing its key support at ₹400. Medium- as well as short-term trends are down for the stock. The indicators and oscillators in the daily as well as weekly chart continue to feature in the bearish zone, signalling selling pressure. It is trading way below its moving average compression (21-, 50- and 200-day moving averages). A corrective rally can take the stock higher to ₹410 or ₹420 levels. But, a conclusive break above ₹420 is needed to strengthen the near-term uptrend and take the stock higher to ₹440 levels. Failure to move beyond ₹420 can keep the stock under pressure and pull it down to ₹390 or ₹380 levels. Desist trading in this stock. Subsequent important support below ₹380 is at ₹360 levels. Key resistance beyond ₹440 is at ₹460 levels.