Rishi Kohli of ProAlpha Systematic Capital told CNBC-TV18, "There is a bit of under performance on State Bank of India (SBI) but that's what makes it more interesting because some of the private banks like ICICI Bank and Axis Bank have actually bounced a little bit whereas SBI still remains on the lower end of its span."
"What has happened in SBI is that it had made a bottom around Rs 1450 in August-September 2013, then it had rallied to Rs 1925 and from there it has fallen back to around Rs 1450 earlier this month. From there this current bounce has started and its pretty clear that double bottom around Rs 1450 is there and from there at least minimum 38 percent retracement is definitely very quickly on the cards which would take it to Rs 1630-1640 levels," he said.
"Interestingly the 50 day moving average is also placed there. So, very easily one can keep a stoploss at Rs 1450 which is a double bottom and go long for a target of Rs 1630-1650."
Disclosure: He has no positions in SBI and Tata Steel.
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