The near-term outlook remains range bound for the stock of Punjab National Bank (PNB) (₹39.55) though the long-term outlook remains negative. The stock finds an immediate resistance at ₹44 and support at ₹36.15. A close above the immediate resistance will change the short-term outlook positive and has the potential to lift the stock to ₹56.90. A close below the immediate support can drag PNB towards ₹31.80 and the major support at ₹28.70.
F&O Pointers: PNB August futures closed with a marginal premium at ₹39.75 as against the spot price of ₹39.60. On Friday, the August futures, which has been moving in the band between ₹42.50 and ₹38, shed open interests. However, in the last two weeks, open positions jumped from 1.22 crore shares to 31.81 crore shares. Option trading indicates a range of ₹38 and ₹45.
Follow-up: Hold LIC Housing Finance options.
Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.