State Bank of India (SBI), the country’s largest public sector lender, is drawing market attention ahead of a key board meeting on May 20 to consider raising up to $3 billion via public or private offerings in FY25-26.
According to SEBI-registered analyst Gaurav Narendra Puri, technical and fundamental indicators suggest building momentum.
Puri has issued a bullish short-term outlook, setting short-term targets of ₹815, ₹830, and ₹850, with a stop loss at ₹775 and a one-month time horizon.
He believes that SBI’s momentum appears positive: the Relative Strength Index (RSI) stands at 58, which signals a bullish trend, and the stock is supported by a strong 20-day exponential moving average (EMA).
Additionally, SBI is rebounding from a well-established trendline support, and the broader Bank Nifty index is at all-time highs, reflecting sector-wide strength.
Volume analysis also shows increased activity in the last five trading sessions, reinforcing the bullish outlook.
From a fundamental perspective, SBI has demonstrated robust profit growth, delivering a 36.3% compound annual growth rate (CAGR) over the last five years and maintaining a healthy dividend payout ratio of 18.2%.
The bank’s debt-to-equity ratio is at its lowest in five years, indicating improved balance sheet strength.
SBI shares are flat year-to-date (YTD).