SBI: BANG ON TARGET BELOW 1900

Hope you all remember our SBI strategy.

Those who are reading this for first time, kindly check the last posts here:

1. http://equityexperts.blogspot.in/2012/07/ratio-put-spread-for-sbi.html

2. http://equityexperts.blogspot.in/2012/08/update-on-sbi-call.html

3. http://equityexperts.blogspot.in/2012/08/curious-case-of-sbi.html

As i mentioned clearly in all the posts that SBI's technicals doesn't send a right signal about future price movement, today the same was proved with a bang as SBI almost fell by 7% in last 2 trading sessions.

Always remember that Charts always send signals of what is really coming, so was SBI's chart showing same signals.

Here is the snapshot of SBI's result.

Rs (m)	1QFY12	1QFY13	Change
Interest income	241,974	289,167	19.5%
Interest expense	144,979	177,979	22.8%
Net Interest Income	96,995	111,188	14.6%
Net interest margin (%)	3.6%	3.6%
Other Income	35,342	34,988	-1.0%
Other Expense	59,913	64,410	7.5%
Provisions and contingencies	41,569	24,563	-40.9%
Profit before tax	30,855	57,203	85.4%
Tax	15,020	19,688	31.1%
Profit after tax/ (loss)	15,835	37,516	136.9%

 
 137% of profit rise is only on account of base effect.

 NPAs rose from 1.6% to 2.2% YoY basis.This is what led to a sell off.

One person even accused me of making people lose money by letting them know of what's coming in SBI.I can't understand the basis of his judgement till now. But then some people tend to criticize everybody and everything, you can't do anything about them.

 Now I think all the persons who were  investors in SBI might have understood my logic. I was shouting from roof top to either stay out of SBI and wait for resut or enter the strategy i had given. Which had a maximum risk of Rs 625/- and reward of Rs 11,000/-.

Below is the chart which needs no explanation. Told clearly that if SBI doesn't cross 2085-2100, it can fall upto 1800 levels. See SBI hit a high of 2089 on 08/08.2012 and could not sustain and then came the fall.

AGAIN I WOULD LIKE TO EMPHASIZE THAT THIS BLOG IS AN ENDEAVOR TO GIVE YOU CRYSTAL CLEAR VIEW OF WHAT IS HAPPENING IN MARKETS. I AM NOT ENDORSING ANY PARTICULAR STOCK OR VIEWPOINT. I AM ALSO NOT WRITING THIS BLOG TO MAKE ANYBODY TAKE MY PAID SERVICES, BECAUSE I DO NOT RUN ANY PAID SERVICE.

I SIMPLY  PUT ON MY BLOG WHATEVER I TRADE AND ANALYZE FOR THE BENEFIT OF ALL OF YOU.

SO ENJOY BLOG.

HAPPY INVESTING AND TRADING.

RANVIR SINGH