SBI share price can see levels till Rs 330-Rs 325, says expert

SBI share price: Vishal Wagh, Research Head at Bonanza Portfolio has done a detailed analysis for traders and investors that will help them to understand the SBI stock trading levels and stop-loss. SBI is the leader in PSU Banking space. Q3 FY21 results of SBI have been above expectations and guidance given by SBI on asset quality is extremely good, he says. SBI share price today closed at Rs 351, down by Rs 2.6 or 0.75%. SBI share price has moved down by 2% from Rs 357 to Rs 351 in one week.

The current newsflow regarding PSU banks has kept SBI under the spotlight. SBI has also given a sharp rally and gained more than 40% on a closing basis and 50% considering the recent top in Feb 2021. Before this kind of move, SBI was in the big range of Rs 230 – Rs 350, i.e. 120 points, from 2016 to 2020. On the downside, in Covid-19 fall, it has tested 150 which is 80 points down from the said range, which is approximately 67% of the range. Post breakout above Rs 350 it has tested Rs 427 last week which is again around 77 points up this is also around 65%. In short, as per the range breakout theory, both the side targets of 61.80% have been achieved, according to Wagh.

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SBI started its current rally from the bottom of 150 and managed to touch 427. So, a Fibonacci retracement of 23.80% of the entire rally is around 362, Wagh says. There is one small dip post initial bounce back at 175 and 23.80% retracement from there is at 368. The last move of SBI started from 269.50, the 38.20% Fibonacci retracement is at 367. The last 8 weeks' rolling pivot is at 365. The 20 days' rolling pivot is at 369. There is an open gap on 5th Feb between Rs 358 to Rs 385, so multiple levels are showcasing major support around the Rs 358 – Rs 369 range, Wagh revealed.

Post looking at the above analysis the upper side seems limited in SBI to Rs 427 – Rs 435 levels and on the lower side 1st support level is at Rs 370 – Rs 360 range. If broken these levels then it will be ready for further fall till Rs 330 – Rs 325 levels, Wagh concluded.