The stock of SBI nose-dived almost 10 per cent last week, decisively breaching key supports at Rs.250 and Rs.233 levels.
This fall has strengthened the stock’s intermediate-term downtrend. The short-term trend is also down. The stock trades well below its 50 and 200-day moving averages.
The indicators on the daily chart feature in the bearish zone. However, the stock’s next key supports are placed at Rs.220 and Rs.210 levels. This could provide a breather for the stock, which has been on a free-fall.
Traders with a short-term perspective can hold their short position with stop-loss at Rs.233 and exit at around Rs.210. On the other hand, an emphatic rally beyond Rs.233 could lead to an upmove to Rs.240 and then to Rs.250.
To alter the short-term downtrend, the stock needs to conclusively break Rs.260 levels. Such a break can take the stock higher to Rs.290 levels in the medium term. Supports below Rs.210 are at Rs.200 and Rs.190 levels.
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