SBICARD: Bullish Butterfly Harmonic Pattern - @Godfreystocks77

Technical Analysis

The butterfly pattern is forming, with the PRZ at 882 as the 1.272 extension of the XA leg from the recent drop to 914.50 (July 2 close). With the stock at 909.30, it’s near support around 900-905. A reversal zone (e.g., 905-900) is key for entry confirmation—look for a bullish candlestick or RSI upturn. The 52-week high of 1,027.25 remains a long-term target if momentum builds.

Fundamental Catalyst
On July 2, 2025, SBICARD fell 2% (-0.32%) to 914.50 after Goldman Sachs downgraded it to 'Neutral' from 'Buy', setting a 1,006 target (8% upside). The move follows a 30% six-month rally, raising valuation concerns (P/E > 46) and credit cost focus. Despite a 5% drop in five days and a GST notice (Rs 81.93 crore ITC disallowance), Goldman sees strong medium-term growth, supporting a bullish case.

Market Sentiment
The downgrade tempers short-term optimism, but active trade (25 lakh shares) and institutional backing suggest resilience. A reversal above 910 could trigger the butterfly pattern, targeting 882, with potential to reach 1,006 if fundamentals improve.

Trade Idea

• Entry: 905-900 on reversal confirmation (e.g., bullish candle at support).
  
• Target: 882 (PRZ), with a stretch to 1,006.
  
• Stop Loss: 895 (below support).
  
• Risk/Reward: 1:2.5.
  

Wait for reversal zone before entry. Follow @Godfreystocks77 for updates!

Monitor volume and news on GST or trade deals to confirm the setup.