SBI (₹280.8)

Last week, the stock breached its key support at ₹290 and fell 4.4 per cent. With this fall, the stock’s short-term downtrend, that has been in place from the late January peak of ₹335, has been strengthened. The relative strength index in the daily chart has entered the bearish zone from the neutral region. The indicators in the weekly chart are trending downwards and are on the brink of entering the negative territory. The stock can test its next key support around ₹270 and breach its 200-day moving average on its way down. Traders with a short-term view can hold their short positions with a stop-loss at ₹290. Strong fall below ₹270 will add momentum to the downtrend and pull it down to ₹260. Key resistances above ₹290 are at ₹300 and ₹308. Only a decisive rally beyond ₹308 will alter the downtrend and take the stock northwards to ₹315 or ₹326 levels.

comment COMMENT NOW