Last week, SBI’s key support at around Rs.235 held its ground once again. Amid volatility, the stock closed marginally down for the week. The support level of Rs.235 also coincides with the 61.8 per cent Fibonacci retracement level of its prior up move.
A decisive fall below this support can mar the near-term uptrend and drag the stock down to Rs.230 and then to Rs.220. Hence, traders with a short-term perspective can consider selling the stock on such a decline with a fixed stop-loss.
However, if the stock manages to take support from this level, it can move up. It can encounter resistance in the band between Rs.250 and Rs.260. An emphatic breakthrough of this resistance level will strengthen the bullish momentum. Subsequent short-term targets on a decisive rally above Rs.260 are Rs.270 and Rs.280.
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