08 Jul , 2022 By : Kanchan Joshi
State Bank of India (SBI) share price: Maintaining its 'uptrend' that began around a fortnight ago, SBI shares have given a breakout on closing basis. According to stock market experts, SBI shares have given fresh breakout at Rs485 levels on Wednesday session and it may give sharp upside move in near term as Nifty Bank index is also in uptrend.
According to stock market experts, subsidiary business of SBI like cards, insurance, gold loan, etc. have performed well in recent quarters and it is expected to maintain this momentum in future as well. They said that credit growth and recent correction in the stock is expected to attract bulls and positional investors who are scanning Indian stocks after recent sell-off.
SBI share price chart pattern
Expecting further upside in SBI share price, Sumeet Bagadia, Executive Director at Choice Broking said, "SBI shares have given fresh breakout at Rs485 apiece levels on closing basis on Wednesday session. As Nifty Bank index is also in uptrend, one can expect further upside in SBI scrip in short term."
Fundamentals of SBI shares
On what is fueling SBI share price rally, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "SBI is expected to report strong credit growth in current fiscal and its subsidiary businesses like cards, insurance, gold loan, etc. have done well in recent quarter and this momentum is expected to further continue. In fact, SBI's gold loan has crossed Rs1 lakh crore AUM, which is a big number from a public sector bank's perspective." However, Avinash Gorakshkar said that some treasury loss is expected to Indian public sector bank in Q1FY23 and SBI won't remain insulated from it. In that case, there can be some softness expected in the stock on every rise. But, he maintained that overall sentiment for SBI shares is bullish in medium to long term.
SBI share price target
On suggestion to stock market investors in regard to SBI scrip, Sumeet Bagadia of Choice Broking said, "SBI shares have strong support at Rs470 whereas it has strong resistance at around Rs525 apiece levels. One can buy at around Rs485 maintaining stop loss below Rs470 whereas those who have this stock in their portfolio should maintain a trailing stop loss below Rs470 per share levels."
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