Sahil Kapoor of Edelweiss RCM Research told CNBC-TV18, "State bank of India (SBI) is a underperforming stock and it is one of the biggest underperformers right now that we have in the banking space. The kind of selling that we have seen is actually getting to some kind of extreme level. We have seen nine consequently weekly closing which are below the close of the four week prior to that, which indicates big climax kind of a selling and secondly we are seeing a lot of diversions on momentum."
"If one looks at the weekly relative strength index (RSI), it is giving a big positive diversion and the stock is able to hold its September lows, it has not broken that and the same lows were there in December 2012 also. So, this is a big area of support, possibly a bounce back of about 100-150 points is possible," he said.
"As it is a very big underperformer, I think playing through Options would be intelligent right now rather then betting on futures. Possibly one could buy a 1550 call option and wait for this March expiry. Possibly the stock should head towards Rs 1650 whereby the option should reach levels of about Rs 80-100."
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