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The 9 per cent surge in SBI in the second half of the trading session on Friday has made the short-term outlook positive for the stock.

It is obvious that the third leg of the correction that is on since October 27 has commenced from the Rs 1,025-trough.

This wave can take the stock higher to Rs 1,245 or even Rs 1,370 again.

Inability to move beyond Rs 1,245 would mean that the pull back is unsustainable and the stock can move lower towards Rs 990 again.

The presence of the 50-day moving average at Rs 1,370 makes it a formidable medium-term resistance.

If this level is surpassed, SBI can move on to Rs 1,600 again.

— Lokeshwarri S.K.

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