Keep Rs 900 stoploss in SBI: N Pillai

Neppolian Pillai of Modern Shares & Stock Brokers is of the view that in SBI one can keep a stoploss below Rs 900 and trade it closer to that.

Pillai told CNBC-TV18, "Inspite of this sharp fall, I think banking sector is currently very close to it’s major long-term uptrend line; both on the comparative chart, what I have drawn in the up panel and also on the price chart on the lower panel. This is one sector we will be looking into as and when the markets bottoms out. In the coming few days or weeks this is one sector we will be very positively inclined to look at a buy because more stocks be it an Axis Bank or ICICI Bank, they are all at major support levels but very close to that."

He further added, "State Bank of India (SBI) collapsing almost by about 50% from the top. Around Rs 1,024 currently if one is aggressive, one can start from here but on the downside the maximum downside from here is about Rs 100. So Rs 1,020-920 that’s the kind of level, which I will look into, see some kind of positively there to go in and buy for a target of roughly about Rs 1,150 to around Rs 1,240. One can safely place a stoploss below Rs 900 and trade this stock closer to that."