SBI share price: Stock seeing healthy correction now; BUY on DIPS, says this expert

SBI share price today: As the markets open today after remaining closed on Thursday on account of Maha Shivratri, investors of State Bank of India (SBI) will be keeping an eye on this stock. The SBI shares on Wednesday closed at Rs 388.20 on the NSE, almost flat from the previous close. 

The levels around Rs 378 are crucial and the investors should watch this level, Technical Analyst Nilesh Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking recommends. If this level is breached downwards, the levels till Rs 360 will be open, he added.

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"From the highs of Rs 427.70 made by the State Bank of India (SBI) on 18 February 2021, the stock has corrected by almost Rs 39 in the last three weeks. Any price correction should be seen as a 'buy on dip opportunity'," Jain said.  

The SBI shares are currently under some consolidation, Jain said adding that the investors should not be too worried about recent correction as this is a gradual decline. It can be seen as a healthy correction.

He said that the SBI stock has seen a rally from levels around Rs 260 till 420. There was no healthy correction during its journey, Jain said.    

Jain also said that the current technical chart patterns suggest that the SBI should bounce back from the current levels. This is a positive for the stock.  
 
It should be held with a long term perspective.  He said that the short term targets in the SBI shares are Rs 400 and Rs 410.  

As for trading, he said that traders should put a stop loss at Rs 378.  

The SBI stock is well-positioned to attain its positional medium-term target of Rs 450.

The 52-week low is Rs 149.45 which was achieved on 22 May 2020.

SBI Share Price – Fundamental Analysis

Kotak Securities maintains Buy. In its report of 5 February 2021, it estimated over 26 per cent upside.

Puts Target Price at Rs 450