Your view on SBI?

Hi Everyone,

I bought almost 25000 shares of SBI at Rs. 307 and now its trading at Rs. 230. I have lost almost 25% of its value

Will this stock rise in near term? Or should i sell these shares and buy shares like HDFC and Axis?

I am more into banking sector because i feel this sector has a good scope to rise in long term. what is your take?

PS: I am an investor, Not a trader. genuine replies required!!:thumb:

Technically speaking, unfortunately you bought when it really began its decline from top. Now it is almost at one of the logical bottoms. May give you a little more pain but its rise from here, if it comes, will be sharp and will reach somewhere near your buying price. If you are financially strong, you may hold for that rise. I wouldn't suggest hedging at this point.

SBI...now the range is 218 to 253.

Near 253 level, you may exit 50% and wait for correction to buy again. Above view is thinking i am holding the position, i will play in this way as investor, if i entered in any wrong trade in wrong place. No way it is my recommendation.

Worst case situation, SBIN Worst bottom is some where near 171.80.

25000 shares @307 is more than 75 lakhs of investment.. U must have had a well planned strategy before investing this much good amount. Hard to digest.

SBI looks in sorry state on all monthly, weekly and daily timeframes.

Trend lines on monthly suggests 180 is possible in coming months.
Weekly demand line was broken and target is 160 odd levels.
Daily support of last year was broken and shows possibility of 174.

None of the time frames suggests it can make new highs in coming months, max 255 looks possible at present.

Note: This is for educational purpose and should not be used as an advise for making trading decision.

U Invested huge amount , hold for long term,

Rs.76,75000 invested.

spend another lakh on a professional hedging expert. There are ways he can help you on such huge investment.

Hedging is possible, simply he should sell higher call of SBIN and he can take the advantage of premium.

Assuming, if i am holding the position, SBIN upper resistance band is 253, so, selling 250 call is best way of Hedging His position..

This needs patience and logic

yes it involves mixed derivatives positions and continuous additions and deductions in those positions as price moves and time to expiry nears.

Damn.
You said you are not a trader.

This should be a lesson for all. DO NOT BUY WHE PRICE IS RISING HIGH.
Instead, you should be buying t current levels...

Anyway, you should HOLD in my opinion. IT may fall slightly, but then it should rise. However, do watch the market closely this week. It will be decisive for the global economy.

EDIT: Just did some (very little though) reading on SBI. It may fall more. Those looking to buy should wait IMO.