Investors with a short-term perspective can sell the stock of PNB Housing Finance at current levels. The stock tumbled 6 per cent accompanied by above average volume on Monday, breaching a key support at ₹323. In early August, the stock had breached key resistance at ₹230 and continued to trend upwards. Since then, it has been in a short-term uptrend but the trend is weakening now. Recently the stock surpassed it 200-day moving average at around ₹300 and accelerated upwards. But, the stock met with a vital resistance at around ₹337 and reversed direction triggered by negative divergence in the daily relative strength index as well as the price rate of change indicators. The daily RSI is likely to enter the neutral region from the bullish zone and the weekly RSI has entered the neutral region.

 The stock is witnessing selling interest at higher levels. As the uptrend is weakening, we take a contrarian stance and expect the stock to trend downwards in the coming trading sessions and reach the price targets of ₹302 and ₹295. Traders can sell the stock with a stop-loss at ₹322.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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