I am holding SBI Cards at ₹1,036. What is the short-term outlook?
Sanjay Kaimal
SBI Cards and Payment Services (₹1,018.6) : The stock of SBI Cards and Payment Services has been on a sideways consolidation phase since early March this year, in a wide band between ₹880 and ₹1,140. Within this sideways movement, the stock took support at around ₹920 in late July following a short-term downtrend. Subsequently, it began to trend upwards and conclusively breached the key psychological resistance at ₹1,000 in late July. Nevertheless, the stock met with a key resistance at ₹1,050 in the past week and has been in a near-term correction. Significant support at ₹1,000 is likely to provide base.
An upward reversal from this base can take the stock higher to ₹1,050. A conclusive break above this barrier will reinforce the bullish momentum and take it northwards to ₹1,080 and then to ₹1,120-1,140 band. A further breakthrough of this resistance zone can take the stock higher to ₹1,200 levels over the medium term. On the downside, if the stock tumbles below ₹1,000 it can decline to ₹960 and then to ₹920 levels in the short term. Next supports are placed at ₹900 and ₹880.
![0808SBICardscolcol 0808SBICardscolcol](/theme/images/bl-online/1x1_spacer.png)
A fall below ₹880 will alter the sideways movement and drag the stock down to ₹840 and then to ₹800 levels over the medium term.
You can stay invested and average the stock in declines with a medium-term stop-loss at ₹870.
Send your queries to techtrail@thehindu.co.in
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