Resistance caps the upside in SBI

The 21-day moving average halted the bounce-back move in the past week. SBI marked a high of ₹276.5 and has come off from there to close the week on a flat note. The crucial support level of ₹268 is likely to be tested this week. If SBI manages to sustain above this support, a bounce to ₹275 or ₹277 is possible. But, the pull-back last week from ₹276 leaves the bias negative. It also increases the possibility of the stock breaking below the crucial support level of ₹268. Such a break can drag SBI lower to ₹251, which is the 38.2 per cent Fibonacci retracement support or ₹245. Short-term traders can go short on a decisive break below ₹268. Stop-loss can be placed at ₹273 for the target of ₹255. Revise the stop-loss lower to ₹265 as soon as the stock moves down to ₹261. Cluster of supports are seen around ₹245 and an immediate break below it is less probable. An upward reversal from this support will ease the downside pressure. A bounce-back move to ₹260 or ₹265 is possible in such a scenario.

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