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Business News/ Markets / Stock Markets/  SBI shares give breakout. What's driving this banking stock — explained
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SBI shares give breakout. What's driving this banking stock — explained

SBI share has given breakout at ₹485 apiece levels on closing basis, say stock market experts

SBI shares are in the range of ₹470 to ₹485 and it is in uptrend, say experts. (Mint)Premium
SBI shares are in the range of 470 to 485 and it is in uptrend, say experts. (Mint)

State Bank of India (SBI) share price: Maintaining its 'uptrend' that began around a fortnight ago, SBI shares have given a breakout on closing basis. According to stock market experts, SBI shares have given fresh breakout at 485 levels on Wednesday session and it may give sharp upside move in near term as Nifty Bank index is also in uptrend.

According to stock market experts, subsidiary business of SBI like cards, insurance, gold loan, etc. have performed well in recent quarters and it is expected to maintain this momentum in future as well. They said that credit growth and recent correction in the stock is expected to attract bulls and positional investors who are scanning Indian stocks after recent sell-off.

SBI share price chart pattern

Expecting further upside in SBI share price, Sumeet Bagadia, Executive Director at Choice Broking said, "SBI shares have given fresh breakout at 485 apiece levels on closing basis on Wednesday session. As Nifty Bank index is also in uptrend, one can expect further upside in SBI scrip in short term."

Fundamentals of SBI shares

On what is fueling SBI share price rally, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "SBI is expected to report strong credit growth in current fiscal and its subsidiary businesses like cards, insurance, gold loan, etc. have done well in recent quarter and this momentum is expected to further continue. In fact, SBI's gold loan has crossed 1 lakh crore AUM, which is a big number from a public sector bank's perspective." However, Avinash Gorakshkar said that some treasury loss is expected to Indian public sector bank in Q1FY23 and SBI won't remain insulated from it. In that case, there can be some softness expected in the stock on every rise. But, he maintained that overall sentiment for SBI shares is bullish in medium to long term.

SBI share price target

On suggestion to stock market investors in regard to SBI scrip, Sumeet Bagadia of Choice Broking said, "SBI shares have strong support at 470 whereas it has strong resistance at around 525 apiece levels. One can buy at around 485 maintaining stop loss below 470 whereas those who have this stock in their portfolio should maintain a trailing stop loss below 470 per share levels."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 08 Jul 2022, 08:14 AM IST
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