Technical Analysis

SBI may see a corrective fall

GURUMURTHY K | Updated on January 16, 2018


SBI (₹254.4)

SBI fell 3.6 per cent last week. The stock closed just below the 21-day moving average after hovering around it. Immediate support is at ₹251. A strong break below it can drag the stock lower to the key support at ₹245, which may halt the downmove. A subsequent reversal from ₹245 can take SBI higher to ₹255 and ₹260. In such a situation, the possibility of a range-bound move between ₹245 and ₹260 cannot be ruled out. A decisive break above ₹260 will boost the bullish momentum and can take it higher to ₹270 and ₹275. On the other hand, if SBI breaks below the support at ₹245, it can extend its fall up to ₹235 or even ₹230. However, ₹230 is a strong support level and further fall below it is unlikely. Also, the broader outlook is bullish and any sharp fall in the coming days may just be a corrective leg of the broader uptrend. Medium-term investors can hold the longs and accumulate near ₹250 and ₹245. Retain the stop-loss at ₹210.

Published on September 18, 2016

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