State Bank of India (SBI) – Research Note (17 Sep 2025)

surged ~3% today after announcing the sale of its 13.18% stake in Yes Bank to Japan’s SMBC for ₹8,889 cr. The move unlocks value, reduces exposure, and strengthens capital, giving a strong fundamental trigger. Technicals are equally bullish: Triple breakout: descending trendline, inverted H&S (neckline at ₹835), and falling wedge. Price > 200-day SMA, confirming structural uptrend. MACD crossed above 0, RSI in overbought zone (sign of trend strength, not reversal). Key levels: Support: ₹835–820 Target 1: ₹900 Target 2: ₹912 (lifetime high) Extension: ₹950–970+ if ₹912 is broken with volume. Fundamentals: Q1 PAT grew ~12% YoY to ₹19,160 cr, supported by non-interest income. Asset quality is stable, though margins remain under watch. The Yes Bank stake sale adds capital flexibility and boosts investor sentiment. Risks: Profit booking near highs, NII pressure, rising slippages, and macro rate risks. Outlook: A rare confluence of news + chart breakouts supports bullish momentum. Breach of ₹912 could open fresh all-time highs. Traders may ride momentum with disciplined stops. Disclosure: No financial interest. Disclaimer: SEBI Registered Research Analyst. This note is for information only, not investment advice.