PNB - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.0

📊 Swing Trade Analysis: Punjab National Bank (PNB)

PNB presents a strong short-term swing trade opportunity, driven by attractive valuation, solid technical momentum, and high liquidity. While earnings volatility and leverage are concerns, the stock’s proximity to its 52-week high and institutional interest make it a compelling candidate for tactical trading.

✅ Strengths

Valuation & Fundamentals

P/E: 8.54 vs Industry PE: 7.91 → Slightly above peers but still undervalued.

PEG Ratio: 0.12 → Extremely attractive for growth.

EPS: ₹13.1 and Book Value: ₹115 → Trading near intrinsic value.

ROE: 14.2% → Strong shareholder returns.

Technical Momentum

RSI: 69.0 → Bullish, nearing overbought.

MACD: 1.10 → Positive crossover.

Price above DMA50 (₹106) and DMA200 (₹104) → Confirmed uptrend.

Volume Strength

Current volume (1.64 Cr.) > 1-week average → Strong market interest.

Dividend Yield: 2.59% → Attractive for income-seeking traders.

DII Holding ↑ 0.39% → Domestic institutional support.

⚠️ Risks

Earnings Volatility

PAT dropped from ₹4,567 Cr. to ₹1,675 Cr. → -48.5% quarterly variation.

High Leverage

Debt-to-Equity: 12.6 → Typical for banks but worth monitoring.

FII Holding ↓ 0.19% → Mild foreign investor pullback.

ROCE: 6.30% → Low capital efficiency.

🎯 Optimal Entry Price

Buy Zone: ₹106–₹108

Near DMA50, offering a lower-risk entry with technical support.

🚪 Exit Strategy (If Holding)

Target Exit: ₹115–₹118

Near recent high and psychological resistance.

Stop Loss: ₹102

Below DMA200 to manage downside risk.

This setup suits momentum-driven traders who can monitor RSI and MACD for continuation signals and exit on strength. Let me know if you'd like help tracking this setup or setting alerts.

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