SBI may slip to Rs 1820: Mehta

Mehta told CNBC-TV18, “I am not that bearish on the market. But State Bank of India (SBI) is some counter which I have always been bearish on after its results came out a couple of weeks before. Also in the same show when it was running around Rs 1,950 levels we had given a target of Rs 1,820 on the lower side. Exactly from those levels we saw a bounce back again to another Rs 1,910-1,920 levels.”

He further added, “Recently, the recent high in the future of September around Rs 1,909 with good volumes we have seen a sharp fall in SBI. So I think we are not going to cross that level for time being and trading perspective, I think again SBI will come down and touch levels of Rs 1,820 on the lower side. One more thing in the option side also for SBI on Rs 1,900 call and Rs 2,000 call there is a maximum open interest build up on the higher side and that would also help as a stiff resistance for the SBI in the days to come. So I think on a trading perspective, one can hold it with a very small stop loss of around Rs 1,895-1,900 and wait for targets of Rs 1,820 on the lower side.”