State Bank of India or SBI share price has been in uptrend since early morning deals on Friday. SBI share price today opened upside and went on to hit intraday high of ₹564.30 on NSE, logging around 6 per cent rise within few minutes of stock market’s opening of the weekend session. However, profit booking soon triggered in the stock and shares of largest commercial bank of India came down at around ₹555 apiece levels by the end of an hour of trade during Friday deals.
According to stock market experts, this rise in SBI shares is due to the buzz about largest Indian commercial bank trimming stake in Yes Bank once its three year lock-in ends on 6th March 2023 i.e. on Monday next week. They said that fundamentals of the SBI are quite strong and its margins are expected to continue improving dur to rising interest rate regime, but today’s rise is completely speculative and Monday opening will be crucial for both SBI and Yes Bank shares.
Speaking on the reason for rise in SBI share price today, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “SBI share are rising as market is buzz about SBI trimming stake in Yes Bank once its three year lock-in ends on Monday next week. This had led to fall in Yes Bank share price today as well. However, in my opinion, SBI took over Yes Bank to bring it out of the debt crisis and in last three years, situation of the Yes Bank has improved but it still not out of the crisis. Secondly, there are various other stakeholders involved in the decision to book profit in Yes Bank or offload stake in Yes Bank. So, I am expecting little impact on Yes Bank and SBI’s health even when the three years lock-in ends on Monday.”
Santosh Meena, Head of Research at Swastika Investmart said, “Technically, it created a double bottom formation at the psychological level of 500. On the upside, the range of 570 to 580 is an immediate supply zone; above this, we can anticipate new bullish impetus reaching highs of about 630. The long-term structure is quite positive, so I won’t be surprised if SBI reaches four digits within the next two to three years.”
Speaking on SBI share price chart pattern, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi said, “SBI share price bottomed out at ₹520 apiece levels and the stock is currently in ₹520 to ₹570 range. Once the stock closes above ₹570 levels and sustains above this level, then we can expect this banking stock to touch ₹630 and ₹660 levels in short to medium term. So, those who have this stock in their portfolio are advised to hold the stock with stop loss at ₹520 whereas fresh buying is advised only above ₹570 apiece levels after the stock closes above ₹570 and sustains above this level.”
