Punjab National Bank (PNB) Technical Outlook📌 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:
Bullish Case:
Bounce from ₹95.80 and breakout above ₹104.69.
Sustained buying could push the stock to ₹113.59 and eventually to ₹126.
Bearish Case:
A breakdown below ₹95.80 could lead to a retest of ₹84.79.
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.
