SBI Cards eyes record high on Golden Cross breakout, may rally up to 16%

SBI Cards has conquered the 200-DMA, a prime indicator of the trend for market participants, and hints of a likely 'Golden Cross' breakout with 50-DMA and 100-DMA likely to cross the 200-DMA.

credit card
SBI card is set to rally 16%
Avdhut Bagkar Mumbai
2 min read Last Updated : Aug 17 2022 | 2:23 PM IST
SBI Cards and Payment Services, a pure credit card subsidiary of State Bank of India, jointly held with Carlyle Group was roaring in trades, rallying up to 7 per cent in intra-day deals on Wednesday following reports of that Reserve Bank of India (RBI) is against unregulated firms issuing credit cards, and the company could issue fresh credit cards after obtaining an RBI licence.

Thus far, SBI Cards shares have rallied 55 per cent post testing ground near Rs 655 in mid-June 2022. The month of July has seen a surge of over 22 per cent, with follow-up momentum seen in the current month. 

SBI Cards recorded its historic peak at Rs 1,161 in September 2021 and thereafter the price action continued to spiral lower. After a heavy sell-off that lasted till June 2022, the stock has succeeded to rebound with decent hope. 

Technically, SBI Cards has conquered the 200-day moving average (DMA), a prime indicator of trend for market participants and hinting for a 100-DMA and 50-DMA “Golden Cross” breakout. The 200-DMA is set at Rs 862; 50-DMA and 100-DMA are placed at Rs 835 and Rs 817 respectively.

The stock, so far, has decisively surpassed major hurdles at Rs 825, Rs 900, Rs 950 and seems on course to defeat the Rs 1,000 mark. As and when this happens, which seems highly likely with a “Golden Cross” breakout and the Relative Strength Index (RSI) securing fort in the overbought territory, the upsurge could hit a new historic peak, overturning previous all-time high.

The bullish outlook may touch Rs 1,200 level. An upside of over 16 per cent can be viewed on the daily chart. CLICK HERE FOR THE CHART

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Topics :SBI CardsBuzzing stocksMarket trendsMarket technicalsstock market tradingTrading strategiesStocks to buystocks technical analysistechnical charts

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