State Bank of India or SBI share price today hit a new lifetime high of ₹471.90 each in the morning trading session. Carrying on yesterday’s rally, SBI shares open with a gap of above ₹4.30 per equity share and went to new lifetime high. According to stock market experts, this rally in SBI shares is mainly due to the proposal of the Union Cabinet approved yesterday. ₹30,600 crore government guarantee for security receipts issued by National Asset Reconstruction Company (NARCL) as part of resolution of bad loans. He said that SBI will be the biggest beneficiary from this move and in the next three months it can go up to the PSU banking stock. ₹500 per stock level.
Speaking on the reason for the SBI share price rally; Avinash Gorakshakar, Head of Research, Profitmart Securities, said, “The financial position of SBI is already sound and following the announcement of Government of India (GoI) guarantee for security receipts issued by NARCL, SBI is the major beneficiary of this Government of India move. This is going to be a rally in view of this bad bank announcement made by Government of India yesterday and it will have long term impact on the bank.After this counter fall, positional buyers can buy SBI shares for long term. “
Santosh Meena, Head of Research, Swastika Investmart Ltd. said, “SBI surged to its new all-time high with Bank Nifty hitting its new all-time high after the recent developments in Telecom and relief package for bad bank announcement. The overall outlook for SBI is very bullish as It is the strongest bank in the PSU sector, while its fundamentals are better than most private banks. It is trading at 1.5 p/b, which is very attractive as compared to big private banks like HDFC and Kotak Mahindra Bank. Investors are advised to stick with SBI in the PSU basket to create good assets, as the bank’s outlook for significant improvement in asset quality, strong NII growth, and value unlocking through its subsidiaries looks very bullish. Used to be.
Echoing the thoughts of Avinash Gorakshakar; Rohit Singre, Senior Technical Analyst, LKP Securities said, “SBI shares have given a big breakout in the market. ₹440 is on closing basis and the stock chart pattern is very bullish. Those having SBI stock in their portfolio are advised to maintain stop loss over the counter ₹440. However, if anyone is looking to buy this PSU Banking stock, then my advice is to wait as there is a lot of profit-booking waiting in this counter. This stock should be bought around ₹Keep depositing up to 460 and above ₹440. Stock can go up to ₹500 in the next three months however, one must maintain a strict stop loss ₹Taking this position in 440 SBI shares.”
Speaking on SBI share price target; Santosh Meena, Swastika Investmart said, “Technically, SBI Shares has come out of a 10-year consolidation which could lead to a major move in this counter in the coming years as the same pattern was formed in 2003, then the stock has come out of the next increased 10 times in 5. Years. However, on an immediate basis ₹475 to ₹500 area can act as an immediate supply zone but any improvement in the counter should be seen as a good buying opportunity.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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