SBI (₹195.55)

SBI skyrocketed 14 per cent last week. The stock fell to a low of ₹166.6 on Tuesday and made a smart recovery, wiping out the losses. Surprisingly, the stock continued to rise even after the weak results released on Friday. The reversal from the low last week has happened from a significant trend line support and it has eased the danger of seeing any further fall in the stock. Also, the daily candlesticks of the last three trading days of the week show strength in this reversal. Any dips may be short-lived and the stock may find fresh buyers coming in at lower levels and limiting the downside. Immediate support is at ₹190. Cluster of strong supports are between ₹185 and ₹180. Resistance is at ₹202. A break and a decisive daily close above this hurdle can boost the bullish momentum. Such a break can take SBI to ₹209 or even ₹219 — the 200-day moving average in the short-term.

ITC (₹359.45)

Good results helped the stock of ITC open the week with a bang. The stock started with a huge gap-up and made a high of ₹364. However, it came-off slightly in the final trading session to close 9 per cent higher for the week. Important resistance is at ₹362. A strong break and a decisive close above it are needed for the stock to extend its rally. Such a break can take ITC higher to ₹375 and ₹380 thereafter. But inability to break above ₹362 may trigger a corrective fall to ₹355 and ₹350 in the near term. Such a correction can be a good opportunity to buy this stock. Traders with a short-term perspective can make use of the dips to go long near ₹350. Stop-loss can be placed at ₹340 for the target of ₹378. Strong support for the stock is in the ₹345-₹343 zone. The bullish outlook will get negated only if ITC declines below this support zone. But such a break looks unlikely at the moment.

Infosys (₹1,246.4)

Infosys did not sustain the break below its important support at ₹1,190 last week. The stock made a low of ₹1,178 and reversed sharply from there. It has also breached above an important resistance at ₹1,130 to close 4 per cent higher for the week. Near-term support is at ₹1,233, which can limit the downside. Short-term traders can buy on dips near ₹1,235. Place the stop-loss at ₹1,210 for the target of ₹1,270. Key resistances for the stock are at ₹1,270 and ₹1,280. A strong break above ₹1,280 can take Infosys higher to test the psychological ₹1,300 level. Inability to break above ₹1,300 may trigger a corrective fall to ₹1,250 or ₹1,230. But a strong break above ₹1,300 will increase the possibility of the stock rising to ₹1,350. The stock has formed a strong base around ₹1,200. The outlook will turn negative only if the stock declines below this psychological support level of ₹1,200.

RIL (₹972.65)

The short-term downtrend in RIL paused last week, as the support around ₹930 held up well. The stock made a low of ₹925.7 and reversed sharply higher to close 4 per cent up for the week. But this could be a temporary reversal. Immediate support is at ₹960. A further rise to ₹981 is possible this week. If RIL manages to surpass this resistance, then the upmove can extend to ₹990. The region between ₹900 and ₹1,000 is an important resistance level, which can halt the corrective rally. A subsequent reversal from this resistance zone can drag the stock lower to ₹950 and ₹930 once again. It will also pave way for a fall to ₹900. RIL will need a strong break above the psychological ₹1,000 mark to reverse the trend. Such a break can take it higher to ₹1,050 and ₹1,070 once again. The price action will need a close watch to get a cue on whether the stock is gaining strength to rise past ₹1,000.

Tata Steel (₹329)

Tata Steel fell below ₹320 last week. But the fall was short-lived and it reversed sharply higher from the low of ₹311.2 to close 4 per cent up for the week. Further up-move in the coming week will signal the end of the corrective fall that had begun from the April high of ₹364. A strong break above ₹337 will confirm this. Such a break can take Tata Steel higher to ₹344 and ₹355, which are the 100- and 200-week moving averages respectively. These averages had halted the first leg of the uptrend in the stock that had begun in February. But the likelihood of the stock breaching these hurdles is higher this time around. On the other hand, inability to break above ₹337 can drag it down to ₹325 or even lower once again. However, the broader view remains bullish with a strong support between ₹300 and ₹295. Continue to hold the long position and retain the stop-loss at ₹285.

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