SBI share price today: No long positions for now; wait and watch approach advisable expert says

SBI Share price today: People willing to invest in State Bank of India's (SBI) shares should take a wait and watch approach, technical analyst Nilesh Jain of Anand Rathi Securities recommends. The Nifty PSU Bank Index has been under some stress in recent times and the situation is likely to remain as such in near term, he adds.

Though, the Sensex has recovered today by over 2000 points in today's session while Nifty by over 570 points, there is still not much support for the PSU bank stocks he said.

Though he sees formation of base for SBI stock with a stop loss between 173 and 175, he still does not see it conducive to buy SBI shares. This is the major support zone for the stock he said adding that the Target Price would be around Rs 195-200 over a 10 day horizon. In the last 5 trading sessions the stock has breached the 190 mark once on 1 April.

His advice to investors is against taking a long position on the stock, for now. Investors who have already taken a long position can put the stock on hold.  

Nilesh Jain does not see much impact of the lockdown on the SBI shares but said that the current situation of the stock is primarily due to low volumes and liquidity crunch in the overall market. The price of Shares have fallen owing to market correction.

He also cautioned against the rising Covid-19 cases in India and across the globe which has had an adverse impact on the overall markets. He sees the market situation improving if some breakthrough is reached on the Covid-19 cure.

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Shares of SBI were trading around Rs 183.10 on the BSE on Tuesday, witnessing a rise of over 4% pct from the Friday close at around 13:40 pm. Markets were closed on Monday on account of Mahvir Jayanti.