On a weekly time frame, SBI stock (SBIN) has sustained above 50% Retracement Levels and Ichimoku Cloud formation, which is an indication of a bullish trend for the long term. Moreover, SBI share price has shown good strength in prior weeks and settled above the immediate resistance of 231.50 levels. Sumeet Bagadia, Executive Director of Choice Broking says SBI volume activity has also been rising from the last couple of weeks, which indicates buying interest among the traders. On the daily chart, SBI stock is forming a kind of Flag Pattern, which is a continuation bullish pattern and indicates positive strength for the medium to long term.
Additionally, the price has taken good support at 100 EMA on an hourly chart, pulled back from there which suggests a positive move in the counter. Apart from that, a momentum indicator RSI & MACD is showing positive crossover on a weekly chart, which is also supporting the bullish trend. So based on the above technical structure, Sumeet is expecting buying in SBI at Rs 268 with the stop loss of Rs 253 for the upside target of Rs 295 / 310.
Markets managed to settle almost unchanged in a volatile trading session. After the flat start, the benchmark inched lower due to normal profit-taking in the initial hour however gradual rebound in the select index majors helped the index to recoup all its losses by the end. The Nifty index managed to close flat at 13,761 levels. The broader markets indices, midcap and smallcap, also traded subdued and ended lower by 0.4% and 0.3% respectively. On the sector front, IT, Consumer Durables and Healthcare ended with gains whereas Oil & Gas, Banking and Realty were the top losers.
Interestingly, Religare Broking is seeing buying emerging on every dip despite the overbought condition. However, Religare Broking feels it’s prudent to avoid naked leveraged positions now. In absence of any major domestic event, global cues will continue to dictate the market trend.
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Value erosion in dollar, excessive liquidity is driving foreign investors to bet big on Indian equities, which give the rupee a slight appreciating bias in the near term.
However, 73.20-73.00 remains a strong hurdle for the rupee, and with RBI standing in the way, bouts of large-scale appreciation can be ruled out. Religare Broking reckon that the RBI will prefer to keep the rupee exchange rate stable between the 73 to 74.50 band for quite some time now.