SBI (₹190.6)

The stock of SBI seems to be going nowhere as it continues to trade in a tight range and the consolidation phase has entered the second month. While the broader range seems to be between ₹178 and ₹200, within which the price has been oscillating through July, the trading range was narrower last week. It was largely held between ₹189 and ₹195. The stock cannot be expected to trend on either direction until either ₹178 or ₹200 is breached. As the scrip lacks trend, the relative strength index, though above the midpoint level of 50, has been flat for over a month. Similarly, the moving average convergence divergence indicator remains flat. Considering these factors, traders can stay on the fence until the stock exhibits confirmatory signal on either side. A breakout of ₹200 can turn the outlook positive and possibly lift the price to ₹210. Above that level, it can appreciate to ₹218 — the 38.2 per cent Fibonacci retracement level. On the downside, the price area between ₹178 and ₹182 can be a support band. A break below ₹178 can drag the stock to ₹170.