Wednesday, June 25, 2008

SBI .. expect a corrective bounce !

The Nifty behaved more or less as expected. I had indicated that down moves must not be used to short sell. The Nifty opened lower based on the CRR hike by the RBI but later as expected bounced back to close higher at 4250.



One stock which has taken a lot of beating is SBI and today's price movement suggests a temporary halt to the down move (at least for 2-3 days). It has created what is called a 'hammer' pattern in Japanese Candlesticks.

Those trading with a two -three day's perspective may buy on break above 1220 and target a price move of Rs 125. Keep stop at 1170

As Nifty too is likely to touch my target of 4325-4350 , i presume SBI will at least get some 'market support'.

As the saying goes ....Make hay while the sun shines !

CA Rajiv D Khatlawala

2 comments:

Elliot Wave India said...

Good analysis!

Your last post of rounding top for SBI saved me lot of Money!

My hearty Thanks and a lot of respect from my end Sir!

I heared you are writing second book on technical analysis! When is it coming?

Unknown said...

Second book ...Still in process ... should take some more time ...

But I reckon it will be worth the wait (have put in a lot of effort on it )

Thanks for your interest