Comments
SBI (₹277.4)
SBI gained momentum as it surged 4 per cent last week. Importantly, the rally in the past week has taken the stock decisively above the key ₹265-₹270 resistance zone. The stock is more likely to sustain above ₹270 in the near term. The 21-day moving average is on the verge of crossing the 100-day moving average. This is a positive indicator and it suggests that the downside in the short term could be limited for the stock. As such, dips to ₹270-₹265 may find fresh buying interest. A rise to ₹285 or ₹290 is likely in the near term. A strong break and a decisive weekly close above ₹290 will pave the way for a test of the medium-term target of ₹327. Medium-term investors can hold the long positions. Retain the stop-loss at ₹220 and revise it higher to ₹230 as soon as the stock moves up to ₹295. The short-term outlook will turn negative only if it declines below ₹265 decisively. Such a break can drag SBI lower to ₹255. But an immediate break below ₹265 is less likely.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.