Monday, August 13, 2012

SBIN may be nearing a short term bottom!

Weekly Chart
This is a weekly chart of SBIN. I have two possible counts for SBIN, one is bullish for medium term but bearish after that, and other is consolidation for the medium term and then bearish afterwards. I prefer the second one, the reason is the results that SBIN posted recently. I must admit that I am not an expert on the fundamental analysis side. But I do feel that the NPAs of PSU banks are going to soar, and that should be a cause of concern in coming days. I am sure we are going down, as the broad market is developing such a pattern, but whether SBIN will participate in the wave {C} of (B) rally on Nifty is not clear yet.
On the short term though, we may look for buying opportunities in the 1800-1750 zone. In either of the above two scenarios I am looking for a short term bottom in the range mentioned above. I would not hold any of this stock below 1570 though. Please refer the daily chart below for short term count.
Daily Chart


  1. Dont know from technical perspective... but SBI going to sub1000 levels, looks unlikely.. Why would the NPAs go up? Ab toh rate reversal cycle chalu hone wali hai !! Good times ahead for banks ! no?


      I doubt it!


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