SBI Cards still in a consolidation phase; trades at Rs 835 levels
SBI Cards & Payment Services was launched in October 1998 by State Bank of India (SBI) and GE Capital. In December 2017, SBI and Carlyle Group acquired GE Capital`s stake in SBI Card, post which, SBI and Carlyle held 74 per cent and 26 per cent in the company, respectively. Further, in March 2020, it brought its IPO and got listed on exchanges. The initial public offer (IPO) price was in the band of Rs 750 to Rs 755. However, on the listing day, it opened at Rs 661 and made a high and low of Rs 755 and Rs 656, respectively, and finally closed at Rs 681.40. This means that those who had invested for listing gains might have got trapped.
Unfortunately, this stock got no time to recover as at the time of its IPO, the markets were hit badly by the pandemic. This eventually led the stock to drown and make an all-time low of Rs 495. Having said, at the end of May 2020, the stock started to recover and till mid of October 2020, it gave an upmove. Post which, it started consolidating and moved southwards to create a low of Rs 766.10.
As we can see in the above chart, it gave a descending triangle breakout and after that, witnessed a good pullback. Having said, it is still in a consolidation phase that ranges from Rs 766.10 to Rs 864. The stock is presently trading at Rs 835 levels.
Conservative traders can wait for a possible breakout either on the upside or the downside before entering the trade. However, aggressive traders can take trade with strict stop-losses. Day traders can wait for a strong price rejection at the resistance level, before entering into the trade. Remember, at the upside, the near-term resistance stands at Rs 864 and Rs 919 levels, whereas support is placed at Rs 792 and Rs 766 levels.
Disclaimer:
This article is just for understanding purpose and should not be considered as a recommendation. Readers are advised to do their own research before making any investment decision. Further, DSIJ and its authors are not responsible for any kind of losses caused.