Blog posts of '2024' 'November'

State Bank of India Ltd on November 8 reported 28 percent jump in net profit at Rs 18,331 crore for the quarter ended September 30, 2024. The PSU lender had reported net profit of Rs 14,330 crore in the year-ago period.

In July-September quarter, interest income of the bank increased 12.32 percent on-year to Rs 1.14 lakh crore, as per press release. While, net interest income of the lender grew 5.37 percent on-year to Rs 41,620 crore in Q2FY25, from Rs 39,500 crore in a year ago period.

Net interest margins (NIM) of the bank reduced by 15 basis points (Bps) on-year and 8 bps on a quarterly basis. According to the investor presentation, NIM stood at 3.14 percent in the reporting quarter, as compared to 3.22 percent in a quarter ago period and 3.29 percent in a year ago period.

Domestic NIMs of SBI reduced to 3.27 percent in July-September quarter, as compared to 3.35 percent in April-June quarter, and 3.43 percent in July-September quarter FY24, presentation showed.

The bank said its board has given approval for raising long term bonds worth up to Rs 20,000 crore through a public issue or private placement during FY25.

State Bank of India's Chairman CS Setty during the post earning press conference said that the deposits for the system to grow by 11- 13 percent and credit by 13 -14 percent.

Asset quality

Gross non-performing asset (NPA) of the bank reduced by 4.14 percent in the second quarter of the current financial year to Rs 83,369 crore, from Rs 84,226 crore in a quarter ago period and Rs 86,974 crore in a year ago period.

Similarly, net NPA declined by 4.96 percent on a yearly basis to Rs 20,294 crore in Q2FY25. In a quarter ago period, it stood at Rs 21,555 crore and in a year ago period it stood at Rs 21,352 crore, press release.

Gross NPA ratio of the lender improved to 2.13 percent as on September 30, 2024, as against 2.21 percent as on June 30, 2024, and 2.55 percent as on September 30, 2023. Net NPA ratio declined to 0.53 percent as on September 30, 2024, as against 0.57 percent as on June 30, 2024, and 0.64 percent as on September 30, 2023.

Provision coverage ratio in July-September quarter at 75.66 percent improved by 21 bps on-year. Slippage Ratio for H1FY25 improved by 2 bps on-year and stands at 0.68 percent. Slippage
Ratio for Q2FY25 increased by 5 bps on-year and stands at 0.51 percent, release said.

Deposits

In the reporting quarter, total deposits of the lender increased by 9.13 percent on-year to Rs 51.17 lakh crore, from Rs 46.89 lakh crore in a year ago period.

Of the total deposits, current account deposits of the bank stood at Rs 2.78 lakh crore, which has 10.05 percent on-year in July-September quarter. Saving bank deposit stood at Rs 16.88 lakh crore in Q2FY25, as compared to Rs 16.33 lakh crore in Q2FY24.

Term Deposits (TD), which have a largest in total deposit increased by 12.51 percent on-year to Rs 29.45 lakh crore in July-September quarter, from Rs 26.17 lakh crore in a year ago period.

In July-September quarter, Foreign Offices Deposits stood at Rs 2.07 lakh crore.

"Domestic CD ratio at 67.8 percent. The bank will focus on increasing share of CASA," Setty said.

Advances

Gross advances of the lender grew 14.93 percent on-year to Rs 39.21 lakh crore in second quarter of the current financial year.

Domestic corporate loan book increased to Rs 11.57 lakh crore in July-September quarter, as compared to 11.39 lakh crore in April-June quarter, and Rs 9.78 lakh crore, as per press release.

SME credit grew by 17.36 percent on-year to Rs 4.57 lakh crore in July-September quarter, from Rs 3.89 lakh crore, presentation said.

Setty also added that the bank has a corporate loan pipeline of Rs 6 lakh crore.

Stake reduction

During the half year ended 30th September 2024, Yes Bank Limited has allotted 255,97,61,818
equity shares of Rs 2 each pursuant to the exercise of share warrants. Consequently, the stake of SBI in Yes Bank Limited has reduced from 26.13 percent to 23.98 percent.

Stock name: Timken India Ltd.

Pattern: Head and shoulders pattern and retest

Time frame: Daily

Observation:

Starting in March 2024, the stock experienced rapid upward movement. Between May and August 2024, it formed a head and shoulders pattern on the daily chart, breaking down from this pattern in mid-August but encountering strong support that led to sideways movement. Toward the end of October 2024, the stock breached this support level and it is now moving downward with high trading volume. According to technical analysis, if this momentum persists, further declines may follow. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator. Top of FormBottom of FormBottom of Form

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: ABB India Ltd.

Pattern: Double top pattern

Time frame: Daily

Observation:

Since COVID, the stock has been trending upward. However it has formed a double top pattern between May and November 2024 on its daily chart. On November 5, 2024, the stock broke down from this pattern, shifting into a downward trend. This breakdown was also supported by good trading volume. If this breakdown momentum persists, technical analysis suggests the stock may continue to decline further. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Angel One Ltd.

Pattern: Inverse head and shoulders pattern and retest

Time frame: Daily

Observation:

Since January 2024, the stock has trended downward. The stock has formed an inverse head and shoulders pattern between May and October. It broke out of this pattern on October 15, 2024, followed by a retest phase. The stock has since rebounded from the retest and stayed above the breakout line. Technical analysis suggests that with strong upward momentum, the stock may see further gains. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator. Top of FormBottom of FormBottom of Form

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Syrma SGS Technology Ltd.

Pattern: Resistance breakout

Time frame: Daily

Observation:

The daily chart shows a double top pattern, with a breakout level that has served as a resistance line since March 2024. The stock repeatedly approached this line without breaking through, but by late October 2024, it gained strong upward momentum and finally registered a breakout. According to technical analysis, if this momentum holds, the stock may see further upward movement. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Rainbow Childrens Medicare Ltd.

Pattern: Inverse head and shoulders pattern

Time frame: Daily

Observation:

Referring to the previous blog (link for reference), the stock formed an inverse head-and-shoulders pattern on its daily chart and broke out with strong volume on September 19, 2024. After a brief retest, it rebounded on October 23 with solid momentum, leading to a rapid upward movement. This surge helped the stock hit its technical target and reach a new all-time high (ATH). Top of FormBottom of FormBottom of Form

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: RBL Bank Ltd.

Pattern: Head and shoulders pattern and retest

Time frame: Daily

Observation:

Since June 2022, the stock has generally trended upward. However, from July 2023 to October 2024, it formed a head-and-shoulders pattern on the daily chart and broke below the pattern in early October 2024. Following a retest, a large red candle with high volume appeared on October 21, suggesting further downward momentum. If this momentum holds, the stock may experience additional declines according to technical analysis. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Honeywell Automation India Ltd.

Pattern: Head and shoulders pattern

Time frame: Daily

Observation:

The stock’s overall trend has remained upward, but between May and October 2024, it formed a head and shoulders pattern on the daily chart. On October 30, 2024, it registered a breakdown from this pattern with a gap-down opening and significant trading volume. Since the breakout, the stock has closed below the breakdown line for several sessions and is now encountering some support. According to technical analysis, if the stock regains its breakdown momentum, it may face further decline. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator. Top of FormBottom of FormBottom of Form

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: RattanIndia Enterprises Ltd.

Pattern: Support and reversal

Time frame: Daily

Observation:

From April to July 2021, the stock experienced a strong upward trend, reaching a new all-time high. After this surge, the stock cooled off, creating a resistance level. Following several attempts, it finally broke through this resistance in November 2023, turning the resistance line into a support line. Since then, the stock has consolidated, frequently holding above this support. During the recent market correction, the stock has also seen some downward movement and rebounded towards the end of October 2024 from the support line. Technical analysis suggests that if the stock sustains this rebound momentum, further upward movement may follow. It's advisable to look for additional confirmations, such as RSI levels and the MACD indicator.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.