In the midst of volatility, the stock of SBI climbed 3.3 per cent and tests a key resistance at Rs.247. Since its early August peak of Rs.291, the stock has been in a short-term downtrend.
A strong breach of the significant trend-deciding level of Rs.260 is needed to change the downtrend and take the stock to Rs.270 or Rs.280 levels in the short term. Medium-term trend is also down.
To alter this trend, the stock has to conclusively rally above the significant resistance level of Rs.290. The indicators in the daily chart are showing mixed signals. Moreover, decrease in the daily volumes shows lack of strength.
Therefore, traders with a short-term view should tread with caution and initiate fresh short position only on a fall below Rs.237, with a fixed stop-loss. Such a fall can pull the stock down to Rs.230 and then to Rs.220 in the short term. Subsequent supports are at Rs.210 and Rs.200.
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