We recommend a buy in the stock of Punjab & Sind Bank from a short-term perspective. It is evident from the charts of the stock that taking support around Rs 60 in late August this year, the stock changed direction triggered by positive divergence in daily relative strength index as well as moving average convergence divergence indicator. Since then the stock has been in a medium-term uptrend. Near-term trend is also up for the stock.
On Monday, the stock jumped more than 5 per cent with extraordinary volume, emphatically breaking through a key resistance at Rs 72. The stock is trading well above its 50- and 200-day moving averages. The daily RSI is featuring in the bullish zone and weekly RSI has entered this zone indicating upward momentum.
The daily MACD is moving higher in line with the stock in the positive region. Both daily and weekly price rate of change indicators are hovering in the positive terrain implying buying interest. We are bullish on the stock from a short-term perspective. We expect its up-move to prolong and reach our price target of Rs 78.5 or Rs 80 in the upcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 74 levels.