SBI is range-bound with a bearish bias

After opening with a huge gap down, the stock of SBI remained range-bound between Rs.240 and Rs.258 for the rest of the week. 

A breakout of this range will decide the next leg of move. Crucial support is at Rs.240. A break below it will see the stock falling to Rs.235 initially. 

A break below Rs.235 will see the stock tumbling to Rs.225. Traders can wait for this breakout and go short after the stock falls below Rs.240 with a stop-loss at Rs.248. 

On the other hand, if the stock manages to sustain above Rs.240, it can remain range bound between Rs.240 and Rs.261 for some time. Strong resistance is in the Rs.258-261 zone. 

The outlook will remain bearish as long as the stock trades below this resistance zone. The stock is likely to break below Rs.240 and fall to Rs.235 and Rs.225 in the coming days.