Todays Pick

Punjab National Bank (₹191)

Gurumurthy K BL Research Bureau | Updated on January 09, 2018

The short-term outlook for the stock of Punjab National Bank is bearish. The stock tumbled over 5 per cent on Tuesday breaking below the key ₹195-₹196 support region. Prior to this fall, the stock was consolidating sideways between ₹195 and ₹215 for just over a week. The fall on Tuesday confirms the breakout of this sideways consolidation phase. It also suggests that the stock lacks fresh buyers to take it decisively above ₹200. Intermediate bounce to ₹195 may find fresh sellers coming into the market.

The stock is likely to remain under pressure and fall to ₹180 on the back of profit booking. Traders with a short-term perspective can go short. Accumulate on rallies at ₹194. Stop-loss can be placed at ₹197 for the target of ₹181. Revise the stop-loss lower to ₹188 as soon as the stock moves down to ₹185. The bearish outlook will get negated only if the stock bounces back above ₹196 decisively. In such a scenario, the possibility of the stock revisiting ₹215 and ₹220 levels will increase. But such a strong rally looks less probable at the moment.

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

Published on November 07, 2017

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor