Wednesday, April 6, 2016


The short-term uptrend in SBI has paused in the last couple of weeks. The stock dropped over 4 per cent in the first trading day last week. However, it managed to recover most of its loss and closed almost flat. 

The stock faces resistance near Rs.199. A range-bound move between Rs.187 and Rs.199 is likely in the near term. A breakout on either side of this range will decide the next leg of move. With the 21-day moving average also around Rs.187, risk of a downward breach below Rs.187 seems less probable. 

There is in fact high possibility of the stock moving past Rs.199. The next target is Rs.202. Further break above Rs.202 will take the stock higher to Rs.207 and Rs.210 in the short term. Traders with a short-term view can make use of dips to go long at Rs.190. Stop-loss can be kept at Rs.185 for the target of Rs.201. 

The short-term outlook will turn negative if SBI declines below the 21-day moving average support. It can fall to Rs.180 and Rs.177.

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