Domestic stock indexes erased early losses to settle higher on Wednesday, taking the winning run to the third straight session. The 30 share pack BSE Sensex added 123.63 points, or 0.21 per cent, to 60,348. NSE's Nifty gained 42.95 points, or 0.24 per cent, to 17,754. On traders' radars were State Bank of India, Tata Steel and Infosys. Here is what Rohan Shah, head technical analyst at Stoxbox has said on these three stocks ahead of Thursday s trading session:
State Bank of India Ltd SBI is seen trading in an upsloping channel, near the lows of April 2021. The stock has formed a number of tops and troughs around the upper and lower band of the channel. The stock rebounded recently, hitting the lower end of the channel line. Around the same time, the stock price completed a Bullish Reciprocal AB CD Harmonic pattern. Stock has staged a breakout from Double Bottom price pattern, hinting that there is a bullish bias in price. We believe that the stock price will go up to Rs 590 -- 620 levels if the pattern goes well on the expected line. The range of Rs 550 -- 540, where 200 day EMA is placed, may act as a key support area.
Infosys Ltd fell 28 per cent from March 2022 to June 2022, where the price dropped from Rs 1,920 to Rs 1,370 levels. The stock was seen trading sideways in a wide range, but with elevated lows after hitting the low of Rs 1,370. The stock is gaining resistance around 38.20 per cent and 50 per cent of its previous decline from Rs 1,950 to Rs 1,370. The critical resistance levels can be affected in the short- to medium term by levels of Rs 1,590 and Rs 1,660. The level of 1,450 may be used as intermediate support for Infosys, followed by Rs 1,380.
Tata Steel Ltd has declined more than 16 per cent in the last 25 sessions, falling from Rs 124 to Rs 103 levels. The previous swing low and 50 per cent of the previous move from Rs 83 to Rs 124 have backed the support zone at Rs 103 102 levels in the near term. If the stock holds the support, a pullback towards Rs 113-117 can't be ruled out. If the stock fails to hold the support zone, it is expected to continue its downmove. In that case, Tata Steel prices may fall to Rs 98 and Rs 92 levels.