State Bank of India Opens with Strong Gap Up, Reflecting Positive Market Sentiment

Opening Price Surge and Intraday Performance

The stock's opening price reflected a substantial premium over the prior session’s close, signalling strong overnight catalysts that buoyed investor confidence. SBI opened at a level that was 5.56% above its previous close, quickly advancing to touch an intraday high of Rs.1090, representing a 5.98% gain on the day. This price point marks a fresh peak for the stock, surpassing all previous highs in the last 52 weeks and historically.

Such a gap up opening is indicative of positive developments or sentiment shifts that occurred outside regular trading hours, potentially linked to broader sectoral trends or company-specific news. The stock’s ability to sustain this elevated price level throughout the day, rather than retreating to fill the gap, suggests underlying strength in demand.

Comparative Sector and Market Performance

In comparison, the Public Sector Bank sector gained 3.04% on the same day, while the benchmark Sensex rose by 2.66%. SBI’s 3.65% day gain outpaced both the sector and the broader market, highlighting its relative outperformance. Over the past month, SBI has delivered a 6.66% return, contrasting favourably against the Sensex’s decline of 2.24% during the same period. This sustained upward trajectory over recent sessions is further evidenced by the stock’s consecutive gains over the last two days, accumulating a 4.75% return.

Technical Indicators and Moving Averages

From a technical standpoint, SBI is trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This alignment is typically interpreted as a bullish signal, reflecting consistent upward price momentum across short, medium, and long-term horizons.

Additional technical metrics reinforce this positive outlook. The Moving Average Convergence Divergence (MACD) indicator is bullish on both weekly and monthly timeframes, suggesting sustained momentum. Bollinger Bands also indicate a mildly bullish stance on weekly and monthly charts, while the Dow Theory signals mild bullishness over these periods. However, the Know Sure Thing (KST) indicator shows a mildly bearish signal on the weekly chart but remains bullish monthly, indicating some short-term caution amid longer-term strength.

Relative Strength Index (RSI) readings on weekly and monthly scales currently do not signal overbought or oversold conditions, implying room for continued price movement without immediate risk of reversal. On-Balance Volume (OBV) trends show no definitive direction, suggesting volume has not yet decisively confirmed the price action.

Mojo Score and Rating Update

State Bank of India currently holds a Mojo Score of 67.0, categorised under a Hold grade. This represents an upgrade from its previous Sell rating, which was revised on 11 Aug 2025. The Mojo Score reflects a balanced assessment of the stock’s fundamentals, technicals, and market positioning. Despite the recent positive price action, the Hold grade suggests a cautious stance, recognising both strengths and areas requiring monitoring.

The stock’s market capitalisation grade remains at 1, consistent with its status as a large-cap public sector bank. This classification underscores SBI’s significant presence and influence within the banking sector and the broader market.

Gap Up Sustainability and Momentum Analysis

The gap up opening and subsequent intraday high at Rs.1090 demonstrate strong buying interest and positive sentiment. The stock’s ability to maintain levels above key moving averages throughout the session indicates that the gap is unlikely to be filled in the short term. Typically, gap fills occur when the price retreats to the previous day’s close, but SBI’s sustained momentum suggests that the gap represents a genuine shift in valuation rather than a temporary spike.

Moreover, the stock’s outperformance relative to both its sector and the Sensex reinforces the notion of robust demand. The two-day consecutive gains and the 4.75% return over this period further confirm the presence of sustained buying pressure.

Sectoral Context and Market Environment

The Public Sector Bank sector’s 3.04% gain on the day provides a supportive backdrop for SBI’s performance. The sector’s positive movement may be driven by broader macroeconomic factors, regulatory developments, or improved banking metrics, which in turn bolster SBI’s stock price. SBI’s outperformance relative to the sector by 0.56% highlights its leadership within the group.

Given the stock’s current technical and fundamental positioning, the market appears to be rewarding SBI’s recent performance and outlook. The new all-time high price level is a significant milestone, reflecting investor confidence in the bank’s ongoing business trajectory.

Summary of Key Metrics

To summarise, SBI’s trading session on 3 Feb 2026 was marked by:

• Opening gap up of 5.56%
• Intraday high of Rs.1090, a new 52-week and all-time high
• Outperformance of sector by 0.56% and Sensex by 0.99%
• Consecutive two-day gains totalling 4.75%
• Trading above all major moving averages (5, 20, 50, 100, 200-day)
• Positive technical indicators including bullish MACD and Dow Theory signals
• Mojo Score upgrade to 67.0 with a Hold rating

These factors collectively indicate a strong market reception and sustained momentum for the stock, with limited immediate risk of gap fill.

Conclusion

State Bank of India’s significant gap up opening and subsequent price action on 3 Feb 2026 reflect a positive market environment and robust investor sentiment. The stock’s ability to maintain gains above key technical levels and outperform both its sector and the broader market underscores its current strength. While technical indicators suggest some short-term caution, the overall trend remains bullish, supported by recent upgrades in rating and a solid Mojo Score. The new all-time high price level further cements SBI’s position as a leading public sector bank in the Indian equity market.

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