Shares of State Bank of India were seen trading with high volatility post declaring its Q4 results on Thursday. The largest lender reported 83 per cent jump in profit for the quarter ending March 23. In addition, the bank announced a dividend of Rs 11.30 per share.
Technically, State Bank of India’ shares are well placed above the breakout mark of Rs 565 from a short-term to medium-term perspective.
For an upward breakout, the counter now needs to show stability over the barrier of Rs 590 level. A consecutive close over this mark could garner more bullish bias. Breakout shall then see an immediate rally in the direction of Rs 620 and Rs 630, which are its next key obstacles.
Following the Q4 results, if the stock manages to close today’s session over Rs 590, traders can look to enter SBI May 590 CE in the range of Rs 11- Rs 13, keeping support levels at Rs 5. Herein, CE is a call option which grants the holder the right to purchase an underlying asset at a defined price.
The strength in the stock over Rs 590 could see its heading towards Rs 610 – Rs 612 on immediate scale, where once can expect minor profit booking.
Highest open interest so far can be seen in SBI May 610 CE of 64,72,500 contracts and SBI May 580 PE of 64,18,500 contracts. CLICK HERE FOR THE CHART
To read the full story, Subscribe Now at just Rs 249 a month