EquityPandit’s Outlook for SBI for the week (January 25, 2016 – January 29, 2016):
STATE BANK OF INDIA:
State Bank Of India (NSE: SBIN) closed the week on absolutely flat note.
As we have mentioned last week that the stock is in a freefall and the support zone are not holding. Weekly support for the stock lies in the zone of 175 where the trend-line joining lows of March – 2009 and February – 2014 is lying. During the week the stock manages to hit a low of 171 and bounce back to close the week around the levels of 184.
Support for the stock lies in the zone of 175 where the trend-line joining lows of March – 2009 and February – 2014 is lying. If the stock closes below this levels then the stock can drift to the levels of 150 where monthly trend-line support for the stock is positioned.
Resistance for the stock lies in the zone of 195 to 200 where 500 Daily SMA is lying. If the stock closes above this levels then the stock can move to the levels of 220 to 225 where 1000 Daily SMA and earlier lows of the stock is positioned.
The stock has formed a Dragon Fly candle stick pattern in a downtrend around the support zone indicates the trend reversal.
Broad range for the stock in the coming week can be 170 – 175 on lower side to 195 – 200 on upper side.