SBI moved contrary to our expectation; surging beyond the resistance at Rs 1,000 to a weekly gain of Rs 172. As we have been reiterating in our past columns, the stock has strong long-term support around Rs 1,000 and the formation of a morning star pattern in the weekly chart denotes that a sustainable trough could be in place in this stock. Immediate targets for the stock are Rs 1,170 and then Rs 1,270. The long-term 200-day moving average present at the second resistance will be the key resistance for the medium term.
The short-term view for the stock is positive since it recorded a strong close on Friday. Supports for the week would be at Rs 1,060 and Rs 1,040. Short-term traders can play long till SBI trades above the first support.