Buy SBI shares for January series, says expert; check what is working for govt-owned bank

SBI SHARE PRICE: State Bank of India (SBI) shares have outperformed the broader market Nifty50 over one year period, yielding nearly 32 per cent returns against 5 per cent return generated by the benchmark index.

Technical analyst Nilesh Jain said that the view is positive on the overall PSU Bank segment, adding that the upside will continue in the SBI stock in the January 2023 series as well. 

While banking and financial services stocks were witnessing selling pressure on Thursday, this index heavyweight was a silver lining. It was the top gainer on Nifty50 on the intraday basis and was trading at Rs 606 on the NSE, up by Rs 6.60 or 1.10 per cent. 

Jain, who is Assistant Vice President - Lead Derivative and Technical Research at Centrum Broking, recommended buying SBI shares for targets of Rs 630 and Rs 650, estimating a 7 per cent upside from current levels. The support, he said, is at Rs 585.  

The stock has corrected from its 52-week high of Rs 629.55 which it hit on 15 December 2022 and has traded both ways since then giving opportunity for a two-way trade.  

Jain said that the stock is set to test its previous 52-week high and surpass likely in the January series.  

Read More: Stock Market Today LIVE: Nifty reclaims 18000 even as market breadth remains skewed in favour of bears 

The stock was among the top gainer in the 12-stock Nifty Bank index which was trading with manor gains around 2 pm.  

SBI shares have outperformed Nifty by 27 per cent according to a data sourced from Trendlyne. However, the stock has been volatile and traded with a 1-year beta of 1.1. A number above 1 is considered volatile. 

Momentum indicators RSI and MFI are at 50.2 and 46. A number above 20 indicates that the stock is trading in oversold territory while above 70 suggests that the stock is in overbought zone. 

The technical chart shows that all 16 moving averages are in the bullish zone.  

Price Movement Chart 

Source: NSE

The stock is available at a price to book value of 1.92, Trendlyne data said. 

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)