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SBI (₹243.2)
The support around ₹235 for State Bank of India held its ground last week. This level also coincides with the 61.8 per cent Fibonacci retracement level of its prior upmove. Triggered by positive Q2 results, the stock surged almost 4 per cent on Friday with above average volumes. This rally helped the stock recoup its previous week’s loss. It closed the week with 2.5 per cent gains. The stock’s short-term uptrend since its early September low of ₹220 will remain intact as long as it trades above ₹235. However, the stock faces a key resistance in the range between ₹250 and ₹260. A strong rally above this level can reinforce bullish momentum. Therefore, traders should tread with caution as long as the stock tests this resistance zone. Only a strong break can take the stock higher to ₹270 or ₹280. On the downside, a tumble below the immediate significant support at ₹235 can pull the stock down to ₹230 or even ₹220.
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