The outlook for Punjab National Bank (PNB) is negative. Investors with a short-term perspective can consider selling the shares of PNB at current levels. The stock has been in a strong downtrend since December. It had plummeted about 22 per cent in the past week. Tuesday’s 5.6 per cent fall is adding more downside pressure to the stock and suggests that the stock is more likely to extend its down-move in the coming week as well.
Strong resistance lies between ₹78 and ₹80. Intra-day rallies to this resistance could attract fresh selling in the stock. Immediate support is at ₹72 but the stock is likely to break below this support. Such a break can take it lower to ₹70 and ₹67 in the coming sessions. Traders with a short-term perspective can go short. Stop-loss can be kept at ₹75 for a target of ₹67. The downside pressure on the stock will ease only if the stock rises past ₹80. But such a strong rally in the stock looks unlikely at the moment.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)