SBIN - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.6

📊 Analysis Summary

SBIN (State Bank of India) is a large-cap banking stock with strong earnings and attractive valuation. However, its technical indicators suggest neutral to weak momentum, making it a cautious swing trade candidate. The stock is hovering near its 50 DMA and slightly above its 200 DMA, indicating indecision.

✅ Strengths

Low P/E (9.51) vs Industry PE (7.49): Reasonably valued for its earnings.

Strong EPS (₹86.9): Robust profitability.

High ROE (17.2%): Efficient equity utilization.

Dividend Yield (1.99%): Attractive for income-seeking traders.

MACD Positive (0.54): Mild bullish signal.

DII Buying (+0.62%): Domestic institutions showing confidence.

PEG Ratio (0.32): Undervalued relative to growth.

⚠️ Weaknesses

RSI at 42.5: Weak momentum, not yet oversold.

ROCE (6.47%): Low capital efficiency.

FII Selling (-0.61%): Foreign investors reducing exposure.

Quarterly Profit Decline (-8.34%): Earnings contraction.

Volume Below Average: Current volume (81.6 lakh) vs 1-week average (100.1 lakh) — waning interest.

Debt-to-Equity (12.4): Typical for banks but high in absolute terms.

Price Near 50 DMA (₹805): Resistance zone — needs breakout confirmation.

📈 Optimal Entry Price

Buy Zone: ₹780–₹790 Near 200 DMA and recent support — enter on bounce with confirmation from RSI or MACD.

📉 Exit Strategy (If Already Holding)

Target Exit: ₹830–₹850 Near resistance zone and short-term swing high.

Stop Loss: ₹765 Below 200 DMA — exit if trend weakens.

🧠 Final Thoughts

SBIN is a moderately attractive swing trade due to its valuation and earnings strength, but technicals are not yet supportive of a strong move. Traders should wait for RSI to cross 50 or price to break above ₹805 with volume before entering aggressively.

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