State Bank of India Ltd. is largest nationalized bank in India, having more than 26,500 branches across the country and about 137 branches abroad, also it has more than 25,000 ATMs, however SBI Group has more than 45,000 ATMs. So we can see how big this bank is, it has more than 200,000 employees. State bank of India was listed on NSE on 1 March 1995 and after the listing the company has given lots of dividends, bonus shares, stock splits and much more. We are very bullish in this stock for long term view, as we have seen the stock correcting from its high of 3600, we advice investors to keep accumulating this stock on every down fall. Using Fibonacci levels we see the support for SBIN is at 1730 level as it is 50% Fibonacci zone, another support is at 1555 level because its 38.2% Fibonacci level. So we would recommend investors to start buying SBIN aggressively near these two levels for long term targets as 3170 and then 3490 level, also the stop loss for this position should be below 1500 level only on closing basis. Taking a look at stochastic indicator we find SBIN is still bearish and the momentum must continue as we are watching the weekly charts.
Fundamental Outlook of SBIN:
Fundamentally, State bank of India is very strong, having huge assets than its debt. Also we have seen the performance of SBIN has always surprised market participants with its better than expected results. We are very bullish when we see fundamentals, investors cannot ignore Banking stocks at these cheap levels. SBI has free float market Capital of about 123000 crores, also its EPS (earnings per share) was at 109. The stock currently trades at a P/E of 17 even though this is much higher than industry P/E of 7.5, The Book Value currently stands at 1023. Company has paid very good dividends it has regularly paid about 300%. Face value of SBIN stock is still Rs.10.
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