Traders with a short-term view in SBI can initiate short positions with stop-loss at Rs.264

Last week, the stock plunged 7 per cent with good volume breaching the immediate support at Rs.274 levels. The stock has decisively breached the moving average compression (21-, 50- and 200-day moving averages) at around Rs.278. However, the stock found support at the next base zone between Rs.258 and Rs.260 and is testing it. A conclusive fall below the base zone will intensify selling pressure and pull the stock down to Rs.250 and then to Rs.241. Traders with a short-term view can initiate short positions on such a fall with stop-loss at Rs.264 levels. An upward reversal from the current level can keep the stock moving sideways in a wide range between Rs.258 and Rs.290. Investors with a medium-term view can desist from trading in the stock. Immediate resistances are pegged at Rs.270 and Rs.280 levels.