SBI declined sharply from the resistance at Rs 1,350 indicated last week to an intra-week trough at Rs 1,202.
But the strong recovery from this level implies that the medium term trend in the stock continues to be up. Though the stock can move between Rs 1,200 and Rs 1,350 for a few more sessions, there can be an upward break-out that takes it higher to Rs 1,433 or Rs 1,577.
Investors however need to tread cautiously till the stock closes above Rs 1,350.
The medium-term view for SBI will stay positive as long as it trades above Rs 1,100.
Repeated attempts to cross above Rs 1,600 between July and September 2008 makes this level a possible ceiling for this calendar.