Trading strategies in SBI, BoB, Tech Mahindra, DMart post Q4 results

Watch out for these key levels on SBI and Bank of Baroda, while Tech Mahindra and DMart can be avoided for now.

Given the ongoing earnings season, stocks have been witnessing sharp swings in trade post results. For instance, shares of India’s largest public sector lender State Bank of India (SBI) jumped nearly 4 per cent in Monday's trade after the bank had reported its quarterly results on Friday. Depsite today's gain, SBI was still down 16 per cent when compared with its historic peak at Rs 549. 

Similarly, shares of Bank of Baroda, Tech Mahindra and Avenue Supermarts (Dmart) too were in focus post annoucement of their Q4 results over the weekend. Most of the stocks were trading with solid gains barring Tech Mahindra which lost over 3 per cent in trades so far.
 

Here's a quick technical analysis on the select stocks going ahead: 
 

State Bank of India (SBIN) 

Likely target: Rs 479

Upside potential: 5.50%

On one hand, shares of the State Bank of India trade under the 200-day moving average (DMA) placed at Rs 479, showing weakness and a negative bias, the major trend remains stable-to-positive as per the weekly chart. The formation of “Head and Shoulder” has a breakdown neckline at Rs 440, which if violated on the closing basis could trigger a sell-off, shows the weekly setup. As of now, the stock is holding the positive stand trading above the neckline and as long as it manages to defend the same, one can expect a recovery in trend to Rs 479, its 200-DMA. CLICK HERE FOR THE CHART

Bank of Baroda (BANKBARODA)

Outlook:  Needs to hold 200-WMA

There is a formation of “Higher High, Higher Low” on the weekly setup of the Bank of Baroda. This pattern signals a bullish bias which also has formed a “Golden Cross”. Any up move above Rs 120, the Golden Cross breakout mark could trigger a fresh buying momentum and to do that, the stock needs to hold Rs 89-level, its 200-weekly moving average (WMA). One can expect a positive rally back to Rs 120 if the stock holds 200-WMA. CLICK HERE FOR THE CHART

Tech Mahindra Ltd (TECHM)

Outlook: Last support in the range of Rs 1,150 to Rs 1,117

Shares of Tech Mahindra fell over 35 per cent from an all-time high of Rs 1,838 and continue to see downward bias. The formation of “Death Cross” of 50-DMA and 200-DMA has further dampened the positive bias. The last support for the stock comes at the gap-up range seen in July 2021 around Rs 1,150 to Rs 1,117 levels. If that get broken with strong selling pressure, the downside journey could enter a long-term bear phase. CLICK HERE FOR THE CHART

Avenue Supermarts Limited (DMART)

Outlook: Some bounce cannot be ruled out

The Avenue Supermarts shares broke the downside support of Rs 4,000 post consolidating roughly around the same for three months from January 2022 to April 2022. This breakdown exhibits a short-to-medium term weakness, which might continue to see added sell-off if the stock fails to retrieve back to Rs 4,000-mark.  At this time, the Relative Strength Index (RSI) trades in the oversold territory and may see some rebound. However, until the stock trades under Rs 4,000, it would be wise to stay away from such trend.  CLICK HERE FOR THE CHART