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POSTED BY ON August 17, 2013 2:12 pm COMMENTS (10)
Dear Jagoinvestors,
Within 1 Yr, Investors can easily get min 30 to 50% return from SBI (State Bank of India) stock.
1) Given below chart is 1 Yrs data.
http://postimg.org/image/idytqfis5/
Now SBI is at 1 Yr low.
2) Given below chart is 2 Yrs data.
http://postimg.org/image/59621b5b1/
In last 2 Yrs, SBI low is 1550 and High is 2550. But many times, it trade 1800-2400 range many times, and at 1550 levels only 2 times in last 2 Yrs.
In last 2 Yrs, whenever it touch 1800 levels, it went up to 2400 immediatly.
3) Given below chart is 3 Yrs data.
http://postimg.org/image/5854ixg7f/
From this chart, we can observe that SBI High is 3515 and now its trading at 3 Yrs low. Now it is available below half of the all time high (3515/2=1707).
4) Given below chart is 5 Yrs data.
http://postimg.org/image/wwwcydtc5/
From the above chart, we can easily understand the Entry and Exit points.
5) Given below chart is 7 Yrs data.
http://postimg.org/image/xfk6ddsv7/
From this chart, we can observe 3 triangle shapes.
In first Triangle, Low is near to 1000/- and High is near to 2500/-. This chart range is from 1st Jan 2007 to 1st Jan 2009.
In 2nd Triangle, Low is near to 1550/- and High is near to 3515/-. This chart range is from
Mid-2009 to Dec-2011.
In 3rd Triangle, Low is near to 1575/- and High is near to 2550/-. This chart range is from
Dec-2011 to Till Date.
This analasys is completely depends on Technical Analasys. Yes, History may not repeat itself but it rhymes.
Now SBI near to 1600. If we buy at this price and exit at 2400, our profit will be 800/- (Half of our Entry Price). I think it can beat any asset class. Even many stocks like PNB, Andhra Bank… etc also are in same position. If you miss earlier bus, catch it now to become a value Buyers.
Thanks,
Sekhar
2021 © Jagoinvestor.com All Right Reserved
Hi Soma
I have just started looking into value investing as well .. will be good to share ideas. Hope you read this post and reply back.
I am currently looking at Stan Chart .. as of January 2014, its looking great from P/E perspective (have made a post on the same)
Looking at the charts , the SBI stock really looks promising from technical analysis point of view . I think its an excellent point to get into with awesome return potential with lower risk . However I would say that if SBI cracks 1400 levels, its better to take the loss and get out . However as suggested by Sekhar , the return potential is extremelly high compared to loss potential and high risk investors should definately take position in stock .
Manish
Hi Manish,
At this price, there is no risk to investing in this stock. But it’s depend upon our planning.
*For Ex:*
I have 3 Lakhs in my pocket to invest in markets. Then i will split these 3 Lakhs into 3 parts.
Then every month i will buy shares worth of 1 Lakhs.
1) I will buy 65 shares of SBI at 1530/- (1 Lakh) on 20th, Aug, 2013. (Tomorrow)
2) Next Month, I will buy 71 shares of SBI at 1400/- (1 Lakh) on 20th, September, 2013 if it come down upto 1400/-.
3) Next Month, I will buy 63 shares of SBI at 1600/- (1 Lakh) on 20th, September, 2013 if it come to 1600/-.
Thanks,
Sekhar
Dear Soma,
Well done, but what if
3) Next Month, I will buy 63 shares of SBI at 1600/- (1 Lakh) on 20th, September, 2013 if it come to 1600/-.
wont come and SBI hit rockbottom of 1000 and when it come back to stable then only up to near about 1200-1500.
Dear Mehul Sharma,
For Ex:
1) Tomorrow, You will buy 64 shares of SBI at 1550/- (1 Lakh)
2) Next Month, You will buy 71 shares of SBI at 1400/- (1 Lakh) on 21th, September, 2013 if it come down upto 1400/-.
3) If the price will come to 1000/-, then you will get 100 shares by investing 1 Lakh. Don’t lower your money. This is the secret of SIP.
Then, Add 64+71+100 shares= 235 Shares and your investment is 3 Lakh.
So on average, every single share value will be 1276/- (300000/235). So here the break even point is 1276/-.
1) So whenever it touches 1900/-, simply exit all your positions.
2) Here you won’t need to wait for the 2400/- value.
But there are many reasons that SBI will not touch 1000/-, even 1200/- mark also.
The reasons are below mentioned.
1) In 2009, SBI P/E Ratio is 7.9 and now SBI P/E Ratio is 7.8% below than 2009 levels.
2) Today Nifty P/E Ratio is 15.62, lowest since 2009.
3) Yesterday Banks P/E Ratios near to 4 Yrs low.
This is really a golden chance for the investors.
Thanks,
Sekhar
Hi Mnish,
Just now i posted one post regarding Andhra Bank. It’s more attractive than SBI at this level. Today i met few stock brokers were saying Nifty would touch 4800 levels in coming days.
Today Nifty trading at 5400 levels and brokers saying Nifty will touch 4800 in coming days. This is an indication that markets will bottom out in coming days. Today everybody is highly pessimists in markets.
All commodities trading at higher levels. So in coming days, Liquidity may shift from Gold, Silver, Crude…etc to Equities.
This is right time to think about Value Buying.
Thanks,
Sekhar
Dear Soma, I ‘m not into trading so can not comment. Do it at your own risk. 🙂
Thanks
Ashal
Dear Ashal,
Thanks for your reply.
Thanks,
Sekhar
Dear Soma, be ready for nasty surprizes in between.
thanks
Ashal
Hi Ashal,
I got your point. But one thing we have to observe from these stocks. SBIN, Vijaya Bank, Andhra Bank, PNB….etc are trading near to 2009 low and their P/B value is less than 1. Particularly for Vijaya Bank, Andhra Bank, PNB Banks …etc book values are 3 times of their current market price. SBI P/B ratio is less than 1. So definitely we can expect some value buying in next week.
May be in next week, there are chances that SBI will touch 1700 mark (Trading Perspective).
Thanks,
Sekhar