Traders with a short-term view can consider selling the SBI with a Stop loss of Rs.240

Last week, the stock of SBI extended its weakness and tumbled 2 per cent. The stock has decisively breached its short-term up trend line as well as its 21 and 50-day moving averages. 

With this decline, it appears to have resumed its medium-term downtrend. The indicators in the daily chart feature in the bearish zone. 

The stock currently tests an immediate key support level at Rs.235. An emphatic fall below this level will mar the short-term uptrend and drag the stock further down to Rs.230 or even to the September low of Rs.220 in the upcoming weeks. 

Traders with a short-term view can consider selling the stock on such a fall with a fixed stop-loss at Rs.240 levels. On the upside, significant resistances are pegged at the levels of Rs.245 and Rs.260. 

Only a conclusive rally beyond Rs.260 can alter the medium-term downtrend and take the stock northwards to Rs.270 or Rs.280 levels.