SBI Share price should hold the base of Rs 360 - Rs 365 and resume the rally again, failure to do so will see Rs 340 levels
SBI Share price should hold the base of Rs 360 - Rs 365 and resume the rally again, failure to do so will see Rs 340 levels
Vishal Wagh, Research Head at Bonanza Portfolio highlights technical analysis for traders and investors on SBI shares. This detailed analysis will help them to understand the trading levels and stop losses on SBI. Post final verdict on moratorium the banking stock remained in news and many of them have shown positive momentum in prices. SBI Share price today is Rs 367, down Rs 6 or 1.5%.
The SBI had given a sharp rally in January and mid-February around 40% on a closing basis and 50% if from the recent top in Feb 2021. Before this kind of move, SBI was in the big range of Rs 230 – Rs 350, i.e. 120 points, from 2016 to 2020.
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On the downside, in Covid-19 fall, it has tested 150 which is 80 points down from the said range, which is approximately 67% of the range. Post breakout above Rs 350 it has tested Rs 427 last week which is again around 77 points up this is also around 65%. In short, as per the range breakout theory, both the side targets of 61.80% have been achieved.
On the weekly chart, SBI has created an ' Inverted hammer' in the second week of February and it has consistently shown profit booking so far. Whereas on a daily basis it has created a 'Head and Shoulder pattern' with a Neckline at Rs 384. The Neckline is broken and the gap is filled by the SBI. Currently, SBI is showing strong support around 50 EMA on a daily basis.
SBI started its current rally from the bottom of 150 and managed to touch Rs 427. So, a Fibonacci retracement of 23.80% of the entire rally is around Rs 362. There is one small dip post initial bounce back at 175 and 23.80% retracement from there is at Rs 368. The last move of SBI started from 269.50, the 38.20% Fibonacci retracement is at Rs 367. The most expected target around Rs 365 level is already achieved by SBI.
So, now SBI should hold the base of Rs 360 – Rs 365 and resume the rally again. In case of failure to do the same one can see sell-off in the counter which may move towards Rs 340 Demand Zone.
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