Forecast for Punjab National Bank (PNB) Share Price - 10th May

Today's Opening - 93

Today's High - 94

Today's Low - 91

Today's Closing - 91

I am writing on this stock after more than six months, i.e. first time after the Nirav Modi story broke. Last I wrote on this stock was in Oct 2017 when the PSU banks were on a roll due the government's support interventions but the story has changed a lot since then.

 

Lower closing today with volumes almost 70% higher than yesterday.

 

The 2-day Relative Strength Index has remained below 50% for most part of the past five months. The 12, 26-day Moving Average Convergence Divergence too has remained negative during this period.

The stock has closed below the 5-day Exponential Moving Average and has been that way for most of the sessions since Jan 2018.

 

The 20-day Commodity Channel Index has been negative for more than three weeks now. The Negative Directional Index has been stronger than the Positive Directional Index continuously since 16th April this year.

 

PNB has a strong support at 90. The stock has a resistance at 96 and the stock is trying to stabilize at 91-92 before trying to break the 96 level that it failed to cross on 2nd May as well as 8th May. Keep accumulating the stock as long as it stays above 90 since from a trend perspective, the worst seems to be over for this stock.