SBIN Buy Target :2135

SBIN Buy Target :2135

Ø For the last couple of days SBIN was in a very narrow tight trading range. Normally good stocks when they go into a narrow range are eventually going to breakout and that’s what has happened with SBIN yesterday afternoon after news reports suggesting Govt. to infuse Rs.6000 to 7000 cr. in the bank SBIN closed above a crucial level of Rs 1,800 and, has given a down ward trend line break out.(see the chart attached)

Ø According to us RSI oscillator on daily chart is also on rising mode that makes upside momentum reliable.

Ø Looking at the futures activity SBIN has the Highest Open Interest in Terms of value which is nearly 1600 cr. i.e. around 8.8 mln shares which is highest among the banking space, which make case of Short-covering in futures high as the Shorts that were built-up in the name on its way down from 2130 to 1600 are still remained to be in the system.

Ø We Would Suggest Going Long On SBIN with short term Target Of 2135 that is 200 DMA