Technically, SBI (CMP:265) is just trading on the verge of its important positional support zone of 264-260 & sustain below that 255 should provide another vital support. Consecutive closing below 255, it may target 245 & 217 zone on further downside. (Low probability unless & until Nifty break & sustain below 8470-8440 zone).
On the upside, sustain above 264, immediate target may be 280-284 and consecutive closing above that 296-315 may be in the short term. Its mid term target should be 335-341 and by FY-2016, target should be around 351-365 zone (it need to sustain over 280 zone convincingly).
Basically, SBI is presently in its structural consolidation mode, focusing mainly on cleaning its balance sheet from stressed assets / NPA rather than incremental loan growth. It may able to clean its stressed assets by the calender year-2015. With the expected pick up in the investment cycle and better GDP, thanks to "Modinomics", SBI may see a turnaround in its NPA. As with all the PSB(s), SBI is also suffering from recapitalization & consequent dilution of its EPS. There is also uncertainty about its forthcoming QIP issue pricing. Also, recent coal & mining fiasco is adding fuel for selling of all the PSB(s), including SBI, having higher exposure in such companies.
But, going by the recent spate of correction in its price, all such negative news may be already priced in largely.
By BG metrics of quick techno/funda valuation, its median value is around 263 in the current market conditions.
As for today's India-Aus match, technically, Team India is on the break out & target should be the world cup on Sunday with no SL.
| SCRIP | EPS(TTM) | BV(Act) | P/E(AVG) | LONG TERM | SHORT TERM | MEDIAN VALUE | 200-DEMA | 10-DEMA |
| SBIN | 21.78 | 197.4 | 11.5 | 262.02 | 264.75 | 263.38 | 274.1 | 279.84 |
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