State Bank of India (SBI) continues to enjoy a bullish outlook from domestic brokerage firms, driven by strong technical indicators. According to the latest report by JM Financial, the stock is poised to outperform the Nifty Bank index in the coming days—despite lagging behind the banking benchmark so far in 2025. Notably, the Nifty Bank recently touched a fresh 52-week high at 55,961.20.
SBI’s recent price action reflects a breakout above the neckline of an inverse head and shoulders pattern—widely recognized as a bullish formation. This move, accompanied by above-average trading and delivery volumes, suggests increasing investor confidence. JM Financial’s technical analyst, Neeraj Agarwal, projects a potential upside target of ₹890–₹900, with a suggested stop loss at ₹775.
Furthermore, a 3% rise in cumulative futures open interest hints at possible long accumulation in the derivatives segment. Historically, SBI has shown favorable seasonality in May—closing in the green in 7 of the last 10 years, delivering an average return of 3.4%.
Despite trailing the Nifty Bank by 6% in 2025 so far, SBI appears to be nearing a key inflection point. The SBI-to-Nifty Bank ratio is approaching its support range of 0.0142–0.0146. On a one-year time frame, this ratio is currently 1.3 standard deviations below its mean of 0.0158—hovering around the 11th percentile, signaling a potential reversal.
On Tuesday, SBI’s stock advanced 2.3% to ₹835.40, pushing its market capitalization close to ₹7.5 lakh crore. It had earlier closed at ₹816.60—marking a daily gain of over 5%. In 2025 so far, SBI has gained around 6%, compared to the Nifty Bank’s 10% rise.
Adding to the optimism, SMC Global Securities highlighted SBI’s strong rebound from its 52-week low of ₹680 in March 2025. The stock has regained bullish momentum, trading above its 200-day exponential moving average on daily charts. The recent breakout from the inverted head and shoulders pattern is seen as a major technical confirmation of further upside potential.
“With rising momentum and surging volumes, the uptrend appears to be gaining strength,” said SMC Global. “Traders and investors can consider accumulating the stock in the ₹790–₹795 range, with an upside target of ₹875–₹880 and a stop loss below ₹745.”
