Monday, July 26, 2010

SBI - Channels play

SBI has been showing many channels in recent past and below is a weekly graph for the same. Every time there is a break from channel, the trend reverses.

Now it is showing a rising Wedge which is a bearish formation and stock has been resisted at Rs 2500 levels which must be crossed to go higher. Stock trades at Rs 2430 and any break below Rs 2330 stock would reverse up trend. 
RBI policy to be watched on Tuesday 27 July and bill for Government cutting stake in SBI is pending Parliament nod as per news reports. Q1 results would be watched, technically weakness is seen in the stock which can impact overall market too.

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