SBI Cards and Payment Services fell 1.24% to Rs 850.35, extending its losing streak to sixth consecutive trading session.
Shares of the credit card company have declined 5% in six trading sessions from its previous closing low of Rs 895.85 posted on 13 January 2022. The counter hit a 52- week low of Rs 849.65 in intraday today. The stock is down 27% from its 52-week high of Rs 1164.65 posted on 21 January 2021.In last one month, the stock declined 4.5% as compared to a 5% rise in Nifty 50 index.
The counter witnessed selling pressure after after a foreign brokerage on 10 January reportedly initiated coverage on the scrip with a 'Sell' rating and a price target of Rs 654. According to the media reports, the brokerage is among the first institutional brokers to initiate a 'Sell' call on the stock and believes rich valuations of the company have made risk-reward ratio unfavorable.
On the technical front, the stock's RSI (relative strength index) stood at 27.860. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock is trading above its 50 and 100 days simple moving average placed at 941.77 and 1016.26 respectively. These levels will act as crucial support zones in near term.
SBI Card is a non-banking financial company that offers extensive credit card portfolio to individual cardholders and corporate clients.
On a consolidated basis, SBI Cards and Payment Services' net profit surged 67.31% to Rs 344.90 crore on 7.39% increase in total income to Rs 2,695.46 crore in Q2 FY22 over Q2 FY21.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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