Stock market analysts suggest to BUY SBI SHARES for bumper returns - check strategy to be followed

Despite weakness in the stock today, the brokerage and the market analysts are bullish on India’s biggest lender — State Bank of India shares. Experts believe there has been consolidation in the stock due to correction into Nifty Bank, which fell around 700 points today at market open.

The scrip, at around 12:35, declined over 1 per cent to Rs 425 per share on the BSE today, swinging between Rs 428.4 per share, a day’s high level and Rs 420.25 per share, a day’s low level. In comparison, the S&P BSE Sensex tumbled over 450 points to 0.8 per cent at the same time today.

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A domestic brokerage firm — Motilal Oswal has a Buy call on SBI with a target price of Rs 530 per share with a long-term perspective of one year. The stock had hit a 52-week high of Rs 442 per share on June 3, 2021, amid a strong Q4 results announcement.

The market analyst Simi Bhaumik being bullish on the stock says, the current weekly chart looks a little weak, however, the stock would grow 440-450 levels on short-term with a support of Rs 416-418 per share. 

She recommends to Buy SBI shares at dip and expects it would grow Rs 500-550 levels, once its breaches and sustains the current 52-week high of the stock.

Similarly, Choice Broking Executive Director Sumeet Bagadia also suggests to Buy SBI shares at dip for Rs 430-440 levels target on short term and Rs 480-500 levels for long-term with support of Rs 410-415 per share levels. 

He says, the weekly and daily charts of SBI look good, and there has been a consolidation in the stock amid consolidation in Nifty Bank.

The counter has surged over 120 per cent in the last one year, while it has soared around 30 per cent in the last three months, as per the data available on BSE.

The government-owned bank reported an almost double profit in the fourth quarter of FY21 to Rs 6,450 crore as compared to Rs 3,580 crore in the same period a year ago, while marginal growth in revenue by over 3 per cent year-on-year to Rs 651010 crore in Q4FY21.