Technical Analysis: SBI

This stock refused to buckle under pressure and managed to hold above the key support at Rs 1,600 last week.

The near-term outlook for SBI has been revised to neutral.

The stock is expected to fluctuate in the band between Rs 1,600 and Rs 1,800 next week. Fresh longs are recommended only if the stock moves Rs 1,800.

The medium-term view for SBI stays negative. Move between Rs 1,600 and Rs 1,800 will be construed a pause before the resumption of the downtrend from the January peak.

Investors should wait for a close beyond Rs 1,950 before buying the stock. The stock could move towards Rs 1,400 over the medium-term.

Infosys seen reporting good Q4 results

IT bellwether Infosys seen reporting good Q4 March 2008 results. The company unveils results on Tuesday, 15 April 2008. A total of five prominent brokerages expect a between 3.56% to 6.2% growth in Infosys’ adjusted consolidated net profit at between Rs 1223.10 crore to Rs 1254.40 crore in Q4 March 2008 over Q3 December 2007. Operating profit margin is seen remain more or less steady compared to 32.6% in Q3 December 2007.

These five brokerages expect a between a 5.5% to 6.5% growth in revenue at between Rs 4504.50 crore to Rs 4546.90 crore.

Market men will focus on the company’s guidance for the current year. Infosys guidance will give investors a sense of the effect of the weakening US economy on technology spending by companies there.