SBI share price today: Avoid buying or selling for now, expert says

SBI Share price today: People willing to invest in State Bank of India's (SBI) shares should avoid buying this PSU bank share for now, technical analyst Nilesh Jain of Anand Rathi Securities recommends. Though this share gave a breakout, it could not sustain to those levels, he added. Breaching the 200 mark is becoming a psychological barrier for this share, he said adding that the share has seen a reversal after reaching Rs 196.

He cautioned investors saying that this was not a good sign. Jain expects the support at 170 but said that if it goes below this, then it can go to even Rs 160, which doesn't augur well for investors. This fall can be attributed to a descending triangle pattern.

There is a formation of lower top and lower bottom after a big fall. There has been a bounce in the SBI share prices thrice and it reached Rs 196 on the third rebound. The SBI stocks have to come out of this to gain some momentum.

The SBI share price reached a high of Rs 208 on 27 March.

This is a worrying sign for all investors who have invested in SBI shares. The other PSU bank shares are not fairing better, either, he said.

Moreover, the lockdown extension is also creating problems as there is a great likelihood of growing Non Performing Assets (NPA) for all PSU banks. This is a concern as people may not have the money to
repay banks.

The technical analyst also recommends investors to avoid purchasing SBI shares for now. He also said that selling the shares is also not the right things to do as the current prices are not optimum.

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The SBI shares were trading around Rs 173 on BSE on Tuesday, down by 2.5 per cent from the Monday close.