Can u explain IN DETAIL and WITH CHART as to why u think SBIN will move to 2800 in Jan itself.
Why I ask is that I placed order FEB 2800CE at 51 BUT never came and hit 58.55 last.
Dear SM BHAI,
I dont believe that SBIN will fetch 2800 in this month itself. But I believe there is more than 90% posibility for the script to touch 2700 wich is a resistance if you see with fib levels in EOD and I thnik that movement is more than enough for me to sell my call options above Rs. 45. Ok.
Now the Question why it should move towards 2700 arise.
Ok let us have a look at weekly chart (attached herewith). Fib levels here shows a support of 2600 levels where the script closed today. It also shows that 3 ema has not crossed down the 45em (which is counted as a medium term support) and here it also match with the 2600 supports shown by the fib levels. Again if you have a look at the candlesticks it shows three deep weekly corrections for the script in which the third is of this week and weaker than other two. Moreover you can notice that, today the script have traded above yesterdays trading level which was not the case in the past two corrections. Finaly, after the last week correction the script tried to go up for three continuious weeks.
You can also see that even after the NIFTY correcting around 3 % Bank Nifty corrected only 1.19% and SBIN did not correct even 1 % today.
So If you try to add all the above factors and have look to this script cant you find something gracefull about its performance towards 2700 in next week.
Or am I wrong, I expect you, Raunak Sir or both of you may please correct me with your views.
The Chart
Regards,
Gangadharan.