Technical Analysis

PNB Housing Finance (₹338.2): Sell

Yoganand D BL Research Bureau | Updated on March 03, 2020 Published on March 03, 2020

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, decisively breaking below a key medium-term support at ₹372. This fall has strengthened the medium as well as short-term downtrend. Moreover, the long-term trend is also down for the stock. It now trades well below its 21- and 50-day moving averages.

The daily as well as the weekly relative strength indices feature in the bearish zone. Besides, the daily and the weekly price rate of change indicators are hovering in the negative terrain implying selling interest. In late January, the stock encountered a key resistance at ₹580 and resumed the long-term downtrend. Since then, the stock has been in a short-term trend as well. While trending down, it had conclusively breached key support at ₹430 and ₹400.

The recent breach of ₹372 has intensified the selling pressure. The short-term outlook is bearish for PNB Housing Finance. It can continue to trend downwards and reach the price targets of ₹324 and ₹318 in the ensuing trading sessions. Traders with a short-term view can sell the stock with a stop-loss at ₹346.

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

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Published on March 03, 2020
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