Last week, the stock of SBI breached a key resistance around Rs.275. But its 200-day moving average and the key resistance at ₹291 limited further rally.
The stock gained 4 per cent last week. It is currently testing a crucial resistance in the band between Rs.285 and Rs.291.
The daily relative strength index is displaying a negative divergence, indicating a potential trend reversal. The stock can decline and find support around Rs.270 in the coming week.
Traders with a short-term view can sell the stock with a stop-loss at Rs.286. A decisive fall below the base level of Rs.270 will strengthen the down move and drag the stock lower to Rs.260 and Rs.255 levels in the short term.
On the other hand, a strong breach of the immediate resistance zone between the levels of Rs.285 and Rs.291 will strengthen the uptrend and push the stock northwards to Rs.305 and Rs.315 over the same time frame.
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