The HOPE: Mean reversion.
Can SBI rally back to 200 dma on HOPE that worst is behind it? Can pendulum swing back to the mean from severe pessimism?
Here's SBI Bank Chart:
As you can see in the chart above: SBI made a big gap up move on March 02 and since then the stock has traded sideways with support at 175. The big question: Is the current move for real in the market and can beaten down sector like PSU Banks join the rally? It's all HOPE right now. The Hope can disappear soon and hence any trade should be taken with tight stop loss.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers