SBI trades below key barrier
After recording losses for four weeks in a row, the stock of SBI posted a gain last week as it closed at ₹190.3 versus the previous week’s close of ₹182.2. But this could be a corrective rally as the stock has been on a downtrend since the beginning of September and stays below the crucial level of ₹200.
Importantly, it has to breakout of this level to establish a sustainable uptrend. Until then, the stock could be inclined to a bear trend and rallies can be sold into. The price is below both the 21- and 50-day moving averages. The moving average convergence divergence indicator on the daily chart is in the negative territory.
Though the daily relative strength index shows an uptick following the rally last week, it remains below the midpoint level of 50. Considering the above factors, traders can take