SBI share price today: Stock seeing selling pressure, but maintains good structure on charts

SBI share price outlook: The State Bank of India (SBI) stock is under a bit of a selling pressure recently, though it looks structurally good on charts, Nilesh Jain of Anand Rathi Securities said. The technical analyst said that most bank stocks including the PSU banks have been under some pressure over a few days now. 

Today at 12:15 pm, SBI stock was trading around Rs 187.65 on the BSE, up by almost 0.3 per cent. 

Jain said that the RBI Financial Stability Report indicating that the Non-Performing Assets (NPAs) could push the Indian Banks’ gross bad loan to their highest in nearly two decades has come as a negative trigger for most banks including SBI. Though, it is not something that was unexpected. 

He said that the good thing is that the structure of SBI stock still looks good on charts and if it holds onto Rs 181-Rs 182 levels, it may trade between Rs 192- Rs 195 in the near term. Jain said that there could be a pullback if the stock sustains the aforementioned levels. 

He reiterated his position on this stock saying that the risk reward ratio is only in the long term.   

On Monday, the Bank Nifty fell by over 3 per cent led by losses in banking heavyweights such as SBI, HDFC Bank, ICICI Bank and Axis Bank. 
 Another important aspect that is plaguing the sector is the news of extension of moratorium beyond August. If the moratorium is extended further, it does not augur well for the overall sector, he added. Though, there is a strong support for Nifty Bank around 21000-21230, he said.

 Today, the Nifty Bank was trading almost flat at 21,871.65 around this time.

He expects volatility to continue.

Jain said that the cluster resistance zone between Rs 198-Rs 200 continues to hold the stock from going ahead. The technical analyst said that on 8 June the stock attained Rs 197.5. On Wednesday, the prices returned after being almost there.

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The SBI stock has traded in a big range over a 52 week period. While, it attained a high of Rs 351, the 52-week low of the stock is at Rs 149.55.