SBI Share price today - in consolidation phase with negative bias: Technical’s highlighted by Choice Broking
Sumeet Bagadia, Executive Director, Research at Choice Broking says that after continued upside movement, now SBI is in consolidation phase with negative bias which shows some profit booking for the near term. The price has shifted below 9*21 Simple Moving Averages with negative crossover, which indicates downward move. Moreover, the stock has also sustained below the Middle Bollinger Band & Parabolic Sar, which suggests weakness in the counter.
Sumeet Bagadia, Executive Director, Research at Choice Broking says that after continued upside movement, now SBI is in consolidation phase with negative bias which shows some profit booking for the near term. The price has shifted below 9*21 Simple Moving Averages with negative crossover, which indicates downward move. Moreover, the stock has also sustained below the Middle Bollinger Band & Parabolic Sar, which suggests weakness in the counter. SBI Share price closed at Rs 387 in yesterday's trading session, down Rs 2 or 0.5%.
A momentum indicator RSI (14) and MACD also witnessed negative crossover, supporting the bearish trend. So based on the above technical parameter, Sumeet is expecting a sideways move in SBI for the upcoming days. On the higher side, the stock has been finding resistance at Rs 395 levels; any breakout above that level will extend the rally towards the level of Rs 410 – Rs 415. However, on the downside, the stock may take the support at Rs 378 levels.
See Zee Business Live TV Streaming Below:
Choice Broking says State Bank of India (SBI) reported a strong set of numbers for Q3FY21, above market estimates, with net profit at Rs 51.9 bn (13.6% QoQ) on the back of lower provisioning and strong operating performance. Along with strong business growth (credit at 7.6% YoY) and profitability, improvement in asset quality was significant. SBI reported proforma GNPA at 5.44% (down 44 bps QoQ) and NNPA at 1.81% (27 bps QoQ decline) which looks comforting considering the pandemic led turbulence to economy impacting industry performance. SBI received restructuring applications worth of Rs 181.3 bn out of which 65% are from corporate segment and 21% from the retail segment.
SBI Business growth remains robust:
SBI advances grew by 7.6% YoY higher than market estimates due to strong growth in retail credit. During Q3 FY21, retail advances grew by 15.5% YoY, corporate credit at 2.2% YoY, SME at 5.6% and agri advances at 1.8%. With the retail segment, SBI home loans grew by 10% YoY, auto at 3.3% YoY while other retail credit includes personal loans growing at 31.5% YoY. Share of retail segment to domestic advances stood at 39.1% in Q3FY21, up from 36.4% in the year ago quarter.
SBI Assets quality improves significantly:
SBI reported net proforma slippages of Rs 20.7 bn in Q3 FY21. Gross slippages were however Rs 80 bn which also improved significantly compared to proforma slippages of Rs 143 bn in Q2 FY21. Reported restructuring assets at 0.7% of loans remained low and within the guidance (<1%). 9M FY21 proforma slippages and restructuring collectively aggregated to Rs 412.2 bn which is within the mgmt guidance of Rs 600 bn given in Q2 FY21. Assets quality is likely to remain at a comfortable position with highly likelihood of no negative surprises in the near-to-medium term.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Bandhan Bank Q4 FY24 Results Preview: PAT, interest income likely to grow in almost double digits; asset quality may improve
Gold and Silver rate today (May 14, 2024): Precious metals trade in green; yellow metal above Rs 72,000 once again, white metal near Rs 85,350
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
08:58 AM IST