SBI share price may reach Rs 370 levels, says Anand Rathi Securities' Jay Thakkar

SBI Share price: S.tate Bank of India's (SBI) stock on Wednesday was trading in positive zone at Rs 320.90 gaining 3.6 points or 1.3% at around 1.43 pm. SBI shares resistance level is around Rs 335 and the support at Rs 295, technical analyst Jay Thakkar, Assistant Vice President at Anand Rathi said. Thakkar said that chances are high for SBI shares to breach the resistance level of Rs 335 and once that happens it could reach Rs 370 levels.

On Tuesday the shares ended at Rs 317.60. Today it opened at Rs 321.70, attaining an intraday high of Rs 323.95 while it hit an intraday low of Rs 317.30

On the lower side, if SBI share price breaches the Rs 295 mark, they may reach up to Rs 247 levels, the analyst said.

Thakkar said that the stock has been trading positively today because of the recovery seen in the market. Many stocks have been trading in the green today, he said.

Thakkar had previously told Zee Business that the investors who are willing to invest in PSU bank stocks should go for SBI with a caveat that the investors should keep a medium to long term view -  a point also made by another technical analyst Nilesh Jain, when this news service spoke to him earlier.

Thakkar however said that he did not see any major impact of the SBI Card IPO on the performance of the SBI stock.

SBI Cards & Payments Services Ltd, a payment solutions provider of SBI, on 11 February, received in-principle approval for the IPO (initial public offering)  from the market regulator Securities and Exchange Board of India (SEBI). SBI Cards & Payments Services Ltd, a payment solutions provider of SBI, on Tuesday, received in-principle approval for the IPO (initial public offering)  from the market regulator Securities and Exchange Board of India (SEBI).

Nilesh Jain had, however, taken a contrary position reiterating that the SBI stock may benefit from the upcoming SBI card IPO.
 
SBI Card IPO tentative date is most probably in the first week of March 2020. SBI Cards and Payment Services, a subsidiary of the country's largest lender State Bank of India is expecting to raise Rs 6000 crore from the SBI Card IPO. Banking heavily upon the SBI — India's largest commercial bank and promoter of SBI Card — the IPO is expected to outperform other IPOs' performances in the recent past, say some stock market experts, Zee Business earlier reported.

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Though public sector banks, including the largest state-run lender the State Bank of India (SBI) has been in red and has been under performing for quite some time, investors should take a medium-to-long term view of the stock, Nilesh Jain had said.