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The stock of SBI faces strong resistance near ₹232 and is not gaining momentum to move past this hurdle. It was range-bound last week and has been oscillating around the 200-day moving average over the past two weeks.
However, the broader view is bearish. The stock has been in a strong downtrend since the beginning of this year. The price action since September indicates that the overall downtrend is likely to linger on. Support for the stock is at ₹224. A break below this support can trigger a fresh fall to ₹220 initially. Further break below ₹220 will increase the danger of the stock falling to ₹210 and ₹200 thereafter.
Traders can go short on a break below ₹224 with a stop-loss at ₹228 for the target of ₹215. Resistances for the stock are at ₹232 and ₹236. The downside pressure will ease only if SBI breaks ₹236 decisively. But such a strong rally looks unlikely in the near term.
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