SBI shattered the resistance in the band between Rs 1200 and Rs 1220 and almost achieved our break-out target of Rs 1368. It was one of the stronger performers among the pivotals, with 15 per cent weekly gain. Short-term support for the stock is at Rs 1250 and Rs 1180. Short-term traders can hold the stock as long as it holds above the first support. But it faces strong resistance from the band between Rs 1350 and Rs 1370.
The medium-term view for SBI has however turned positive after last week’s move. If this is a counter-trend rally correcting the down-move from January 2008 peak, the first target is Rs 1356 and the next target is Rs 1476. Fresh longs are advised only on a strong move above Rs 1350.