Friday, 29 October 2021

Diwali 2021 Muhurat stock selection - SBI

Diwali 2021 Muhurat time  

One-hour special 'Muhurat' trading between 6:15 pm and 7:15 pm on 4th Nov'21.

I believe in the Indian economy. The latest banking results are very encouraging.  NPA of some leading banks has been reduced.

I decided to buy SBI stocks in this Muhurat. I am using the Jupiter cycle for investment in SBI.

SBI share price action chart

Trading view chart

SBI is in a bullish phase in a one-day time frame. It gave a good correction in the last two days. 

Fundamental analysis for SBI share price 

  • Return on equity, sales growth, free cash flow, and EPS for 5 years to understand how a company manages its business. 
  • More than 50% time in the last 21 quarters SBI beats Nifty 50 return
  • The fair value price should be around 700 for SBI

My investment strategy for SBI

I will start accumulating SBI shares whenever the price crosses yesterday's high. I will place a GTT order to buy state bank shares whenever it breaks the previous week's high. 

This simple technique will ensure I am investing whenever there is positive momentum. This will be a continuous process for the next year. Will book profit whenever total profit will be more than 10%

There will be no stop-loss in this method. 

Will invest lumpsum whenever SBI share price corrects by 10%, 20%, or near AVWAP, 100 or 200 days moving average.

I have a plan to accumulate SBI stocks, whenever RSI (2) comes below 5 in the daily time frame. This I will do using auto trading in Kite. Zerodha streak is the best tool for this kind of algorithmic trading.

I will buy 100 shares initially. Will put GTT orders to buy 50 shares in Zerodha. I will invest 100 shares whenever it will come to long-time support. I will put GTT orders for long-time investment. 

Please click the link to know SBI option chain  


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