With the results today I do believe the stock has hit its bottom which is anyway close to its book value and any further fall would be egg on the face of the government or the country as the bank is proxy for the sovereign.The stock value was brought down before the announcement of the result with the intention that it does not drop heavily when the results are announced and with the number of block deals happening in the past few days it was a planned drop in value.
When the results came all expected it to tank further which did not happen.Those dreaming of 1200 and 1000 rupee level,s well they can keep dreaming.1460 was the boundary though it did jump but, it is the bottom line, which was told to be held.The psu's, banks, and other financial institutions under the government rushed in to buy the shares.What better way for your to appreciate your money than investing in the bank shares than putting the money in the bank at near or below inflation interest rate?
They will keep buying into the shares till it crosses the 1600 level and by that time the share liquidity would get hit too, which in turn will ensure that the price of the share will rise.What better way to increase the share value than mopping up the shares in the open market. A vicarious way of buying back your shares using others funds.Not that the buyers are going to sell the shares any time soon.As in the words of a retailer the operator which is the government is fully in control.
The riot act has been read to the top management of SBI and they have been told in no uncertain terms to get their act together to recover money, and make sure that you do not fritter away any more resources.Now getting a loan is going to be tougher from SBI.The results will only get better from here on, even though there will be stress but it can only get better.
Those of you who have bought calls etc, best time to average out and those who have share holding then wait is the word or if you can add more then do so catering to your appetite.It should in all probability cross 1550 before closing or even higher.