Swing in Place for SBI -Target in Sight

Those who bought SBI Mar Future at my recommended buy price of 184/185, would be sitting pretty. Yesterday I had given this call in my last blog post.

If you had bought just one lot of SBI Mar Future at 184.5 (average of the buy range given), you would be happy with the closing price. In today's trade SBI Mar Future closed at 185.9 and thankfully near its day- high. Since there are 2000 shares in one lot, you are presently sitting on an unrealized profit of 2000 X (!85.9-184.5) = Rs 2800/-

For this call I had given a target of 190. Let us see what happens tomorrow. Lot depends on what happens to Fed rate decision which will be taken at US Federal Reserve meet tonight.

Read very carefully what I have to say now. Following scenarios may develop tomorrow in trade :-

• If SBI opens with a gap up, then target of 190 will be achieved swiftly.
• If SBI opens flat, then price may either go up to 190 with great effort, or it may go down to 182 with equal difficulty.
• If SBI opens with a gap down, then you may find price tumbling to 178.

Whatever be the scenario, target of 190 is very likely to be achieved. However if tomorrow SBI Mar Future closes near 190, then you may like to hold this position for an extended target of 200.