Short SBI on rally; target Rs 1800: Bothra

Kunal Bothra, Sr Technical Analyst, LKP is of the view that, one can sell State Bank of India (SBI) on rally for target of Rs 1800.

Bothra told CNBC-TV18, "There is one big worry for market – reason why probably we are trading lack luster is because there is no strong support from the banking side. If we compare Nifty and Bank Nifty – bank Nifty is almost touching its previous short term bottom which is around 10,300 on closing basis so looking at the market vis-à-vis comparison with Bank Nifty, the Bank Nifty is definitely on a weaker side and that is the reason why one is looking at many stocks. ICICI Bank, State Bank of course these are not holding and are not providing very good support for bank Nifty as well. Till the time bank Nifty remains at these critical support level the Bank Nifty would underperform the benchmark." He further added, "In terms of technical’s for State Bank of India (SBI) a very crucial fall of Rs 1950 level was acting as a support. Couple of weeks back as well but the moment it broke Rs 1950 it has a very sharp momentum going on the downside. I believe the trend has opened, the leg has opened on the downside and one might see levels of Rs 1800 and below. My only belief is that whatever retracement or whatever rally we get for SBI this is a sell into rally even if we get Rs 1925-Rs 1950 kind of levels in SBI in the next few days or weeks. This will be a sell into rally for target of Rs 1800 and below." Disclosers: No personal holdings in any of the stocks but at LKP we keep recommending the stocks to our clients.