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SBIN - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.2

Last Updated Time : 24 May 26, 10:34 pm

Technical Rating: 3.2

Stock Code SBIN Market Cap 8,75,940 Cr. Current Price 949 ₹ High / Low 1,235 ₹
Stock P/E 11.4 Book Value 590 ₹ Dividend Yield 1.83 % ROCE 6.02 %
ROE 15.5 % Face Value 1.00 ₹ DMA 50 1,038 ₹ DMA 200 990 ₹
Chg in FII Hold 1.07 % Chg in DII Hold -0.93 % PAT Qtr 19,684 Cr. PAT Prev Qtr 21,028 Cr.
RSI 31.9 MACD -34.9 Volume 84,39,543 Avg Vol 1Wk 1,40,41,368
Low price 782 ₹ High price 1,235 ₹ PEG Ratio 0.76 Debt to equity 12.3
52w Index 37.0 % Qtr Profit Var 5.58 % EPS 86.7 ₹ Industry PE 7.84

📊 Chart Analysis: SBIN is trading at ₹949, below both its 50 DMA (₹1,038) and 200 DMA (₹990), showing short-term weakness. RSI at 31.9 signals oversold conditions, while MACD at -34.9 confirms bearish momentum. Bollinger Bands indicate price near the lower band, suggesting downside exhaustion. Current volume (84.39L) is lower than the 1-week average (140.41L), reflecting weak participation.

📈 Momentum Signals: Short-term momentum remains negative, but oversold RSI hints at a possible rebound. MACD continues bearish, so caution is warranted.

💹 Support & Resistance: Key support lies near ₹782, while immediate resistance is at ₹990 (200 DMA). A breakout above ₹1,038 (50 DMA) could trigger bullish momentum. Optimal entry zone: ₹880–₹900. Exit zone: ₹1,030–₹1,050.

🔄 Trend Status: The stock is currently consolidating after a downtrend, with potential reversal signs if support holds.


Positive

  • ✅ Strong ROE of 15.5% shows efficient capital use.
  • ✅ P/E of 11.4 vs industry P/E of 7.84 indicates relative value.
  • ✅ PEG ratio of 0.76 suggests undervaluation relative to growth.
  • ✅ Dividend yield of 1.83% provides steady returns.

Limitation

  • ⚠️ High debt-to-equity ratio of 12.3 raises leverage concerns.
  • ⚠️ ROCE at 6.02% is weak compared to peers.
  • ⚠️ PAT declined sequentially from ₹21,028 Cr. to ₹19,684 Cr.

Company Negative News

  • 📉 Quarterly profit decline of 5.58% raises concerns.
  • 📉 DII holdings fell by -0.93%, showing reduced domestic confidence.

Company Positive News

  • 📈 FII holdings increased by 1.07%, reflecting foreign investor interest.
  • 📈 EPS at ₹86.7 remains strong, supporting fundamentals.

Industry

  • 🏦 Banking sector trading at lower industry P/E of 7.84, suggesting value opportunities.
  • 🏦 Sector growth supported by rising credit demand and government infrastructure push.

Conclusion

📌 SBIN shows short-term weakness but is oversold, making it a candidate for rebound if support near ₹782 holds. Entry around ₹880–₹900 with exit near ₹1,030–₹1,050 offers favorable risk-reward. Fundamentals remain intact, though high leverage and weak ROCE are concerns. Overall, the stock is consolidating with potential reversal signals.

If you’d like, I can also prepare a trendline chart or a support_resistance map to visually highlight these zones.

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