The stock of Punjab National Bank fell almost 3 per cent accompanied by above average volume on Wednesday, breaching a key support immediate support around ₹133. Investors with a short-term perspective can consider selling the stock at current levels. The stock has been on an intermediate-term downtrend from its December 2014 peak of ₹231.
Both medium- and short-term trends are also down for the stock. It trades well below its 50- and 200-day moving averages. The stock’s recent decline has decisively breached its 21-day moving average. Both the daily and weekly moving average convergence divergence indicators hover in the negative terrain implying downward momentum. The short-term outlook for the stock is bearish.
Sell the stock with a stop-loss at ₹133.5. The short-term targets are ₹125 and ₹122.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)