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The sideways movement in the ₹232-250 range, within which the stock of SBI traded since mid-September, was broken last week. It fell 6 per cent. Though there is an immediate support at ₹220 — which is likely to be tested this week — the overall outlook is bearish. The price action since the second week of September suggests the formation of a rounding pattern on the weekly chart. This signals a continuation of the downtrend in place since January this year. A strong break below ₹220 can drag the stock lower to ₹210 or ₹200. Short-term traders can go short with a stop-loss at ₹235 for the target of ₹215. Intermediate rise to test the resistance at ₹232 can be used to accumulate short positions. But a strong rally above ₹233 will ease the pressure. Such a break can pave way for a rise to ₹240 and ₹243.
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