SBI share price today: This is preventing stock from breaking away | Explained

SBI share price outlook: While the indicators look positive for the State Bank of India (SBI), this PSU stock is still grappling with a psychological barrier of Rs 200, technical analyst Nilesh Jain of Anand Rathi Securities said today. Though it attained a level around Rs 202 last week on an intraday basis, it requires a closing around this level to gain momentum from here, Jain said.

Today, the SBI shares were trading at Rs 184.35 on the BSE at 12:15 pm, up by over 0.5 per cent.

Jain said that the stock is facing resistance just around Rs 200 and this is preventing it from breaking away. There is a cluster resistance zone between Rs 198-Rs 200. The technical analyst said that on 8 June the stock attained Rs 197.5.

While a breakout is required, it is also important for SBI stock to sustain at those levels, he added.

However, he was optimistic about the stock as the weekly charts indicated positive trends for this PSU bank share. The chart indicates an inverted head and shoulder pattern with a neckline around Rs 200, he further said. SBI stock could reach a target price of Rs 215-RS 220, if this cluster resistance zone is breached.

In the near term, he expects the stock to trade in a price band between Rs 175 and Rs 200.

On March it reached a peak of Rs 211 and since then, it has failed to break the 200 barrier on a closing basis.  

The thing which works for this stock is that it has seen a significant correction of Rs 125 and downward movement is unlikely. The stock has a very strong support zone at Rs 170.

See Zee Business Live TV Streaming Below:

The SBI stock has traded in a big range over a 52 week period. While, it attained a high of Rs 373.70, the 52-week low of the stock is at Rs 149.55.