Punjab National Bank (PNB) Technical Outlook

5天前

📌 Current Price: ₹100.53 (+1.05%)
📌 Sector: Banking
📌 Timeframe: Daily

Key Observations:
1.Descending Channel:

• PNB has been trading in a well-defined descending channel since its peak of ₹142.40. The current trend remains bearish, with lower highs and lower lows.
  

2.Fibonacci Retracement:

• Major Levels:
• 0.618 (₹113.59): Key resistance.
  
• 0.5 (₹104.69): Immediate resistance.
  
• 0.382 (₹95.80): Current support.
  
• 0.236 (₹84.79): Next critical support if the stock breaches ₹95.80.
  

3.Support and Resistance Levels:

• Support: ₹95.80 (holding strong for now).
  
• Resistance: ₹104.69, followed by ₹113.59.
  

4.Volume Analysis:

• Declining volume suggests indecision among traders, indicating a potential consolidation phase.
  

5.RSI (Relative Strength Index):

• RSI shows the stock is moving out of oversold territory, which could trigger a short-term bounce.
  

Jefferies Target 🎯:

• Revised Target: ₹135
  
• This aligns with the 0.786 Fibonacci level (₹126.26), a crucial point where PNB would need to break out of the descending channel and confirm a trend reversal.
  

Potential Scenarios:

1. Bullish Case:
2. Bounce from ₹95.80 and breakout above ₹104.69.
   
3. Sustained buying could push the stock to ₹113.59 and eventually to ₹126.
   

Bearish Case:

1. A breakdown below ₹95.80 could lead to a retest of ₹84.79.
   
2. Failure to hold ₹84.79 might push the stock to its next support zone around ₹80.
   

Trading Strategy:
1.Short-Term Traders:

• Watch for a breakout above ₹104.69 for a quick target of ₹113.59.
  
• Stop-loss: ₹95.
  

2.Long-Term Investors:

• Accumulate near ₹95.80 or ₹84.79, keeping ₹80 as a long-term stop-loss.
  

Final Thoughts:
The stock's long-term prospects remain aligned with its sector growth and broader market recovery. A breakout from the descending channel could attract significant buying interest, aligning with Jefferies' bullish target of ₹135.