Trade Idea of The Day - State Bank of India Ltd Target Rs. 38 - Religare Broking Ltd
State Bank of India Ltd
BUY 29 SEP 1000 PUT Entry Range 12 – 15 Target 38 Stop Loss 5
Rationale
• SBIN witnessed sustained selling pressure during the week and settled below the long term moving average of 50-WEMA, which indicates weakening price structure and raising the possibility of further downside.
• On the technical front, the stock is trading well below its 20-WEMA, while repeated failures around the 1,050-1,100 zone highlight strong overhead resistance. Sustained trading below 1,000 may keep the sell-on-rise bias intact.
• Momentum indicators are also turning weak, with RSI hovering near 40 mark. Meanwhile, the MACD histogram trading in a negative trajectory, suggesting weakening momentum and limited strength in the near term.
• Going ahead, sustained trading below the 1,000 zone may trigger further selling towards the immediate support zone of 960-950, followed by recent swing low of 930. The bearish view would weaken only if the stock prices reclaims and sustains above 1,030-1,050 zone on the closing basis.
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SEBI Registration number is INZ00017433
