SBI share price Technical Analysis: Decoded by Bonanza Portfolio

SBI share price: Vishal Wagh, Research Head at Bonanza Portfolio highlights technical analysis for traders and investors on SBI share. This detailed analysis will help them to understand the trading levels and stop losses on SBI. SBI share price today is Rs 392, down Rs 3 or 0.7%. SBI is the leader in PSU Banking space. Q3 FY21 results of SBI have been above expectations and guidance given by SBI on asset quality is extremely good. SBI Share price closed at Rs 383.65 in last session, down Rs 12 or 3%.

The current news flows and momentum in PSU banks have kept SBI in news. The SBI has also given a sharp rally and gained more than 40% on a closing basis and 50% if we consider the recent top in Feb 2021. Before this kind of move, SBI was in the big range of Rs 230 – Rs 350, i.e. 120 points, from 2016 to 2020. On the downside, in Covid-19 fall, it has tested 150 which is 80 points down from the said range, which is approximately 67% of the range. Post breakout above Rs 350 it has tested Rs 427 last week which is again around 77 points up this is also around 65%. In short, as per the range breakout theory, both the side targets of 61.80% have been achieved.

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On the weekly chart, SBI has created an ' Evening Doji Star', whereas on a daily basis it has created a 'Head and Shoulder pattern' with a Neckline at Rs 384. The Rs 384 is also the higher level of an open gap from the Rs 358 to Rs 384 levels. At the same time, RSI is quoting at 61.80 levels. Due to the Doji close on Monday it has created a 'Harami Cross'. Daily close is below the 8-day rolling pivot. This is a mixed bag setup in SBI. 

SBI started its current rally from the bottom of 150 and managed to touch 427. So, a Fibonacci retracement of 23.80% of the entire rally is around 362. There is one small dip post initial bounce back at 175 and 23.80% retracement from there is at 368. The last move of SBI started from 269.50, the 38.20% Fibonacci retracement is at 367. The last 8 weeks' rolling pivot is at 365. The 20 days' rolling pivot is at 369. There is an open gap on 5th Feb between 358 to 385, so multiple levels are showcasing major support around the 358-369 range.

Post looking at the above analysis the upper side seems limited in SBI to 427-435 levels and on the lower side 1st support level is at 370-360 range. If broken these levels then it will be ready for further fall till 330-325 levels.