PRESENTATION ON FUNDAMENTAL AND TECHNICAL

ANALYSIS OF SBI

SUBMITTED BY
THOMAS DAVIS
3511310326

STATE BANK OF INDIA

(SBI) has history of more than 200 years of

existence.
SBI is the largest commercial bank in India and
accounts for approximately 18% of the total Indian
banking business and the group account for 25% of
the total Indian banking business. The central bank,
Reserve Bank of India (RBI) is the largest shareholder
in the bank with 59.7% stake followed by overseas
investors including GDRs with 19.78% shareholding
as on September 06. RBIs stake in the bank is likely
to be transferred to the Government of India (GOI).

FUNDAMENTAL ANALYSIS

Fundamental analysis is the study of economic factor

industrial environment and the factor related to the
company. This chapter of fundamental analysis
consists of Economic analysis, Banking industry
analysis, Ratio analysis of SBI. Economic analysis
with favorable GDP with savings, investment, stable
prices, balance of payment, and infrastructure
facilities which provides a best environment for
common stock investment Industrial analysis growth
follow a pattern. This replicates the banking industry
monitory policy, CPR, SLR, and the flow of the
industry.

ECONOMIC ANALYSIS

The level of economy has an impact on investment in many ways.

If the economic growth rapidly, the industry can also be expected
to show rapid growth and vice versa. When the level of economic
activity is low, stock price are low, and when the level of
economic activity is high, the stock price are high reflecting the
prosperous outlook for sales and profit of the firms. Vigorous
growth with strong macroeconomic fundamentals has
characterized developments in the Indian economy in 2006-2007
so far. The ratcheting up of growth observed in recent years in
reflected in the eleventh five year target of an average annual
growth of 9.0% relative to 8.0% targeted by the tenth plan (20022003 to 2006-2007). Services contributed as much as 68.6% of the
overall average growth in GDP in the last five years.

INDUSTRY ANALYSIS

The lower contribution of industry to GDP growth relative to

services in recent year is partly because of its lower share in GDP,
and does not adequately capture the signs of industrial resurgence.
Growth on industrial sector, from a low of 2.7% in 2001-2002,
revived to 7.1% and 7.4% in 2002-2003 and 2003-2004,
respectively, and after accelerating to over 9.5% in the next two
years, touched 10.0% in 2006-2007.The growth of industry, as a
proportion of the corresponding growth in services, which
was78.9% on the average between 1991-1992 and 1999-2000,
improved to 88.7 % in the last seven years. Within industry,
the growth impulses in the sector seem to have
spread to manufacturing.

TECHINICAL ANALYSIS

The weekly pattern suggest a short term bullishness on the stock

with a price target of 1300. The current level is crucial for the stock
to hold the support of 885. A close below 885 could drag the stock
towards south to the target zone of 660. At current levels, there could
be greater chances of bounce back from 885. This could become a
complete head and shoulder pattern in coming months. If that proves
to be successful, it is advisable to unwind all long positions at the
right shoulder top (1330-1350) Indicator Analysis:
Moving Average (14 Day) is on positive note and RSI
started moving towards North.Since Moving averages
being a lagging indicator, it has considered secondary
in Analysis

CONCLUSION

This indicates that, the key driver of stock performance of SBI

hows a decreasing trend besides its high potential.
The initial investment summary cover with a sell
rating to SBI based on strategic investment using
the Analysis.
The analysis was done by fundamental and technical analysis