SBI Share Price Touches 52-week Lows; Resistance at Rs 780
SBI share price declined to its yearly lows on Tuesday and if selling continues in Indian markets on Thursday, we could see a fresh low for the biggest PSU lenders in India. SBI stock closed at its yearly lows on Tuesday and the stock could see further downside. However, investors should keep a close watch on the stock to pick up at the right levels for long term investment. SBI offers a great long term value for investors looking to invest in Indian banking sector.
Technical Analysis: Trends and Key Levels
Candlestick Pattern Analysis
SBI’s daily chart indicates bearish sentiment, with recent candlestick formations suggesting selling pressure.
The Relative Strength Index (RSI) at 31.74 is nearing oversold territory, hinting at a potential price reversal in the near term.
InCred Equities Reduces Target Price for SBI
Domestic brokerage firm InCred Equities has downgraded its rating on the stock from ‘Add’ to ‘Hold’, citing concerns over the sustainability of non-core income, which plays a significant role in the company’s Return on Assets (RoA). Analysts highlighted that the company's recovery from the write-off pool has been weaker compared to its state-owned enterprise (SOE) peers, raising questions about long-term profitability.
Additionally, InCred Equities has revised its target price downward, reducing it from Rs 1,100 to Rs 795 per share, reflecting a more cautious outlook on the stock’s future performance.
Fibonacci Retracement Levels
Applying Fibonacci retracement from the 52-week high (Rs 912.00) to the 52-week low (Rs 710.00) highlights the following levels:
| Fibonacci Level | Price (Rs) |
|---|---|
| 38.2% Retracement | 780.00 |
| 50.0% Retracement | 811.00 |
| 61.8% Retracement | 842.00 |
Near-term resistance at Rs 780.00 may act as a key barrier to further upside.
A breakout above Rs 811.00 could signal renewed bullish momentum.
Support and Resistance Levels
Immediate Support: Rs 707.90, aligning with recent lows.
Immediate Resistance: Rs 744.15, a break above this level could trigger further upside.
Conclusion: Is SBI a Good Investment?
SBI’s consistent earnings growth, expanding loan book, and favorable valuation metrics make it an attractive investment opportunity. While short-term volatility persists, the stock remains well-positioned for long-term value appreciation.
For investors looking for stability and growth potential, SBI’s undervalued status, strong dividend yield, and solid fundamentals suggest promising upside. However, investors should closely monitor market trends, economic conditions, and global banking sentiment before making investment decisions.
