SBI shares at record high, overbought on charts; buy, sell or hold?
SBI share price today: SBI stock hit a record high of Rs 912.10 , rising 9.87% on Monday. The bank is now just Rs 7,419 crore behind ICICI Bank in terms of market capitalisation
- Jun 4, 2024,
- Updated Jun 4, 2024 9:00 AM IST
Shares of State Bank of India (SBI) are trading at their record high. The stock added Rs 68,000 crore to its market cap, with the stock market buoyed by the exit polls in the previous session. SBI stock hit a record high of Rs 912.10 , rising 9.87% on Monday. The bank is now just Rs 7,419 crore behind ICICI Bank in terms of market capitalisation. While market cap of SBI climbed to Rs 8.08 lakh crore, market cap of ICICI Bank stood at Rs 8.15 lakh crore. Total 38.19 lakh shares changed hands amounting to a turnover of Rs 340.98 crore on BSE.
Later, the stock ended 9.12% higher at Rs 905.80 on BSE. At this level, the SBI stock has risen 66.76% from its 52-week low of Rs 543.15
With the SBI stock trading at record high, the scrip is trading in the overbought zone, signals its relative strength index (RSI) of 77. SBI stock has a one-year beta of 0.4, indicating very low volatility during the period.
SBI shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock has risen 58.40% in 2024 and gained 95% in two years. Motilal Oswal in a note said, “The stock is in overall uptrend and forming higher highs-higher lows on monthly scale. It has been an outperformer within PSU space and likely to scale new record highs.”
Kushal Gandhi, Technical Analyst, Stoxbox said, “The heavyweight PSU banking stock displays true market leader characteristics while trading at life-high levels. The price action has been trending strongly since the bullish breakout from a cup and handle pattern observed in February 2024 on the weekly outlook. The price action emerged strongly today from a tight consolidation and volatility compression phase, with a breakaway gap further validating the move. The move came on the highest volume recorded in the quarter and a momentum surge. We recommend buying SBI for the target of Rs 991 with a protective stop at Rs 853. "
JP Morgan is overweight on the SBI stock with a price target of Rs 1,000. CLSA is also bullish on the stock with a price target of Rs 1,000.
SBI is a top pick of Nomura. It also has a price target of Rs 1000 on the stock. The brokerage also raised its Financial Year 2025 and 2026 Earnings per Share estimates for SBI by 15% and cut its credit cost estimates for the same time frame to 0.4% from 0.55% earlier.
Gaurav Bissa, VP, InCred Equities said, "SBI witnessed a fresh breakout from a rising channel pattern on the daily charts. However, that was followed by a small consolidation. It witnessed intense strength in yesterday's trading session adding about 10 percent gains on back of strong volumes. It can test 950-970 levels going forward. RSI has also witnessed a falling trend line breakout which can push it towards 80-82 on the daily charts. Thus, existing investors are advised to hold the positions and fresh buying is advised towards 860-870 zone."
Shares of State Bank of India (SBI) are trading at their record high. The stock added Rs 68,000 crore to its market cap, with the stock market buoyed by the exit polls in the previous session. SBI stock hit a record high of Rs 912.10 , rising 9.87% on Monday. The bank is now just Rs 7,419 crore behind ICICI Bank in terms of market capitalisation. While market cap of SBI climbed to Rs 8.08 lakh crore, market cap of ICICI Bank stood at Rs 8.15 lakh crore. Total 38.19 lakh shares changed hands amounting to a turnover of Rs 340.98 crore on BSE.
Later, the stock ended 9.12% higher at Rs 905.80 on BSE. At this level, the SBI stock has risen 66.76% from its 52-week low of Rs 543.15
With the SBI stock trading at record high, the scrip is trading in the overbought zone, signals its relative strength index (RSI) of 77. SBI stock has a one-year beta of 0.4, indicating very low volatility during the period.
SBI shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock has risen 58.40% in 2024 and gained 95% in two years. Motilal Oswal in a note said, “The stock is in overall uptrend and forming higher highs-higher lows on monthly scale. It has been an outperformer within PSU space and likely to scale new record highs.”
Kushal Gandhi, Technical Analyst, Stoxbox said, “The heavyweight PSU banking stock displays true market leader characteristics while trading at life-high levels. The price action has been trending strongly since the bullish breakout from a cup and handle pattern observed in February 2024 on the weekly outlook. The price action emerged strongly today from a tight consolidation and volatility compression phase, with a breakaway gap further validating the move. The move came on the highest volume recorded in the quarter and a momentum surge. We recommend buying SBI for the target of Rs 991 with a protective stop at Rs 853. "
JP Morgan is overweight on the SBI stock with a price target of Rs 1,000. CLSA is also bullish on the stock with a price target of Rs 1,000.
SBI is a top pick of Nomura. It also has a price target of Rs 1000 on the stock. The brokerage also raised its Financial Year 2025 and 2026 Earnings per Share estimates for SBI by 15% and cut its credit cost estimates for the same time frame to 0.4% from 0.55% earlier.
Gaurav Bissa, VP, InCred Equities said, "SBI witnessed a fresh breakout from a rising channel pattern on the daily charts. However, that was followed by a small consolidation. It witnessed intense strength in yesterday's trading session adding about 10 percent gains on back of strong volumes. It can test 950-970 levels going forward. RSI has also witnessed a falling trend line breakout which can push it towards 80-82 on the daily charts. Thus, existing investors are advised to hold the positions and fresh buying is advised towards 860-870 zone."