“The weaker numbers were on account of the decline in net interest margins and fall in other income due to lower treasury income,” said Arijit Malakar, equity research analyst at Ashika Stock Broking, who suggests long-term investors consider accumulating the stock on dips.
The stock ended 6.7% lower at ₹1,019.3 on Friday. It has fallen 4.1% over the past month while the Nifty 50 is up 0.8%.
Technical indicators are pointing to further near-term weakness.”SBI may see a further dip after this sharp fall and may find support around the ₹970-990 zone,” said Ajit Mishra, senior vice president, research, at Religare Broking. “Participants should wait for signs of stability to enter fresh and maintain stop-loss at the ₹970 level for the existing positions.” Mishra said in the case of a rebound, the ₹1,050-1,075 zone may act as an immediate hurdle.