SBI share price jumped 2.86 percent on Thursday as overall market sentiment was positive. SBI opened the session at Rs 772 and touched an intraday high at Rs 801 before closing at Rs 793.85. The current price action suggests bullish momentum for SBI. However, there could be selling at higher levels, especially in case the overall market trend turns negative. Markets have been highly volatile and this has led to concerns about investors and traders. With a current market capitalization of Rs 7.11 lakh crore, the largest public-sector bank in India has recently shown signs of technical consolidation, yet holds potential upside. Trading between Rs 767.15 and Rs 801.00 in today’s session, SBI's recent price action invites close inspection, particularly in the context of its 52-week range of Rs 680 to Rs 912.

Stock Overview and Valuation Metrics

State Bank of India’s fundamentals remain solid, underpinned by a P/E ratio of 8.93, which indicates relative undervaluation when compared to private-sector banking peers. Its dividend yield of 1.73% further reinforces its appeal to value-focused investors.

Prashanth Tapse, Senior Vice President and Research Analyst at Mehta Equities, has issued a BUY recommendation for State Bank of India (SBI), citing bullish momentum and favorable chart structure.

SBI Trading View: Strategic Entry Points and Technical Setup

At a current market price of Rs 797, SBI is demonstrating strong resilience and price discipline, comfortably sustaining above its 200-day moving average—a technical indicator often used to assess long-term trend strength. Tapse recommends initiating a positional buy at current levels, with a defined stop-loss at Rs 778 to manage downside risk.

The stock has shown consistent accumulation in recent sessions, characterized by the formation of higher lows—a sign of growing investor confidence and underlying demand. According to Tapse, a move beyond the psychological resistance level of Rs 800 could act as a catalyst, potentially pushing SBI toward near-term targets of Rs 820 and Rs 835.

This bullish setup is reinforced by stable technical indicators, and traders seeking medium-term opportunities may consider entering positions with appropriate risk controls in place.

Latest Analyst Coverage

As of April 2025, Motilal Oswal maintains a Buy rating on SBI with a target price of Rs 925, citing strong retail and SME loan growth, improved asset quality, and consistent margin expansion. Their optimism is backed by a notable reduction in Gross NPA and a robust CASA (Current Account Savings Account) ratio, which supports cost-efficient funding.

Candlestick Pattern Interpretation

Recent daily chart patterns exhibit a "Morning Star" formation, which often signals a potential bullish reversal following a downtrend. This three-candle pattern was observed as the stock rebounded from its Rs 767 support zone, posting a long-bodied green candle today—an encouraging sign for bullish traders.

Pattern: Morning Star

Confirmation: Strong volume on the green candle

Implication: Bullish reversal likely if price sustains above Rs 780

Fibonacci Retracement Levels

Using the 52-week high of Rs 912.00 and the low of Rs 680.00, key Fibonacci retracement levels are calculated as follows:

The stock is currently hovering around the 38.2% to 50% retracement zone, which often acts as a consolidation range before further directional movement.

A close above Rs 818 could set up a strong test of Rs 853.

Support and Resistance Zones

Support and resistance play a crucial role in short-term trading strategies. Here are the key zones to monitor:

Support Levels: Rs 767 (immediate), Rs 734 (Fibonacci 23.6%)

Resistance Levels: Rs 818, followed by Rs 853

If SBI breaks above Rs 801 on strong volume, momentum-based traders may enter for targets around Rs 818 and Rs 850. However, a failure to hold Rs 767 could expose it to Rs 734 in the near term.

Competitive Landscape: Axis Bank and HDFC Bank

Among peers, Axis Bank is trading with a higher P/E ratio of ~13, while HDFC Bank is currently priced at a P/E of ~17. Both banks offer strong private-sector operational efficiencies, but SBI’s edge lies in its scale, rural reach, and favorable valuation.

Axis Bank: Strong on retail asset growth, but trades at a premium valuation

HDFC Bank: A favorite among FIIs; high margins, yet currently under regulatory scrutiny for digital onboarding issues

SBI: Balance sheet strength, improving NPA, and moderate valuation make it an attractive PSU bet

Investment Outlook and Actionable Strategy

With strong fundamentals, bullish candlestick patterns, and proximity to key Fibonacci retracement levels, SBI presents a compelling case for accumulation in the Rs 767–780 range.

Short-term Traders: Watch for a breakout above Rs 801 with volume. Target Rs 818 and Rs 850.

Medium-term Investors: Accumulate gradually with a 3–6 month target of Rs 925–950 as per Motilal Oswal's recommendation.

Risk Level: Moderate. Use stop-loss below Rs 734 for capital preservation.

Conclusion

In a dynamic market, State Bank of India stands out with its blend of stability, value, and technical potential. With solid financials, a constructive chart pattern, and market-friendly valuations, SBI could offer both capital appreciation and income via dividends. As India’s economic engine gathers steam and credit growth accelerates, SBI remains a pivotal play in the PSU banking space.