Wednesday, June 5, 2013



SBI is been favorite to many traders and investors. Stock has been corrected for almost 15 days from its recent highs.

If we look at the performance of the stock for last 6 months, it looks it is into a downward channel making lower lows and lower highs. If this is so, stock has to see the levels of 1950 where we may see some buying.

If we look at the performance of the stock for last 1 and half year, stock is in a tight trading range from 1811 to 2500 levels. Long term investors can accumulate the stocks in cash segment even at 2000 levels. if stock corrects to 1940 levels, one can add more. I do not think the stock like SBI can be at lower levels for long time. Stock may see a bounce in coming days till 2200 levels.

Looking at the daily technicals, Stock made a doji protecting its Bollinger bands and formed a base at current levels. If stock trades above 2048 levels, then one can go long on the stock for an immediate target of 2080 tomorrow with SL below 2010.  Except Doji formation, stock did not give any signs of +ve divergence in RSI. Stock also may act to make it in coming days. 2000 to 1940 levels looks strong resistance to the stock. Stock may see a bounce from these levels. If stock bounces from here, stock may see the levels of 2180/2295 in medium term.

Nifty Hourly chart shows some positive Divergence with Doji formation from last 3 hours of trade.

Above 2048, stock may see an upside till 2080. Crossing which stock may visit the levels discussed for positional traders.

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