SBI:Q1 Result Was In Line With Street Estimates--Only Sustaining Above 275 Will Target 295-305-345 And 255-248 May Be A Good Buying Zone; Govt's PSB Initiative May Help

Technical Charts:

Technical Analysis:

SBI (CMP:268) has to break & sustain over 271-275 for an immediate target of 280-285 & 290-295. Only consecutive closing above 295, it may scale up to 305-336-345 & 395 in the medium to long term (bullish case scenario).

On the downside, inability to sustain over 275, SBI may face moderate selling pressure and below 271, it may fall to 266-260-255 zone immediately and sustaining below that 248 might be the target in the short term. Only consecutive closing below 248, SBI might fall further 240-235-229-223-220 & 210-200 zone in the near term (worst bear case probability).

Technical Trading Levels: (Positional)

	SL</>2	FROM SLR
		SBIN	CMP	268
			T1	T2	T3	T4	T5	T6	T7	SLR
Strong >	275		280-285	290-295*	300-305	310-315	320-326	336	345	<271
Weak <	271		266-260	255*	248*	240	235-229	223-220	210-200	>275

Some Inputs:

Q1FY16 result of SBI was by & large in line with street estimates (NP better than estimates, but slight rise in NPA & NII was below estimates and that drags the stock down).

Going forward, market will keenly watch set of numbers over the next few quarters and till then it may be range bound within 248-295 zone.

Various initiatives announced by the Govt on last Friday late in the evening (after market hours) may help all the PSB(s) today including SBI (although discounted by some extent already as there was market talk about this).

Techno Funda Valuation By BG Metrics: (Estimates)

Current median valuation: 255

Projected fair valuation: 285-320-360 (FY:16-18)

SCRIP	EPS(TTM)	BV(Act)	P/E(AVG)	LONG TERM	SHORT TERM	MEDIAN VALUE	200-DEMA	10-DEMA
SBIN	22.81	213.31	10.34	253.19	252.72	252.95	271.79	270.79

 

SBIN

28.35

227.01

10.34

282.26

281.74

282.00

271.79

270.79

 

SBIN

36.25

261.05

10.34

319.18

318.59

318.88

271.79

270.79

 

SBIN

45.55

301.5

10.34

357.78

357.13

357.45

271.79

270.79