SBI share price is skyrocketing! Rich picking for you; experts suggest it is a HOT stock tip!
SBI share price: When should you buy? Stock market experts are of the opinion that this State Bank of India counter may witness profit booking as it has been rallying since the announcement of its second-quarter results.
SBI share price has been skyrocketing ever since its Q2FY20 results have been announced. The banking major has crossed the Rs 300-level in intraday trade and it seems that it is sustaining above these psychological levels. Sensing that a marginal share market investor might jump into the soaring SBI stock, share market experts have suggested that they should not do that. Not yet! Instead, they should play a waiting game. They should wait as some profit booking in the SBI counter is awaited as today is F&O expiry day. Stock market experts are of the opinion that SBI may witness profit booking as it has been rallying for quite some time. They are of the opinion that the SBI share price is trading in the range of Rs 280 to Rs 320 in the current market scenario and after the profit booking it may once again show Rs 290 levels. This will make for an ideal buy position for investors in State Bank of India shares.
SBI share price: What investors should do
Speaking on SBI share price and what stock market investor should do in current scenario, Prakash Pandey, MD & CEO at Plutus Advisors said, "The SBI share price has been skyrocketing because of two reasons — short-covering by the stock market investors in PSU banks that includes SBI shares and strong second-quarter results of the SBI. Today is F&O expiry and those short-positions in the SBI counter are getting covered for the last two-three trade sessions. Hence, this short-covering has also played an important role in skyrocketing of the SBI shares at Dalal Street."
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Pandey advised share market investors to wait for the profit booking that may begin from the next trading session citing, "The SBI share price is trading in the range of Rs 280 to Rs 320. I advise stock investors to wait till it undergoes correction for around 10-15 rupee from current levels and then takes buy position in the counter at around Rs 290 levels maintaining the stop loss at Rs 275."
SBI share price: Fundamentals
Giving fundamental details of the SBI shares Anand Dama, Analyst at Emkay Research said, "The bank has undertaken significant restructuring across business verticals (including corporate/retail, stressed asset management, cross-selling), apart from measures to improve employee productivity and control opex (earlier a key RoA drag), but got overshadowed by legacy asset-quality issues." Dama said that once the SBI counter breaks and sustains above Rs 320 levels, the SBI share price will soon showcase Rs 350 per stock levels.
SBI share price: Perspective
Darpin Shah, Analyst at HDFC Securities said, "SBI share price is poised for an upside move and in one-year perspective, it is expected to hit Rs 389 per stock levels. I advise stock market investors to take a long position in the SBI counter and hold till it shows Rs 389 per stock levels in a one-year perspective."