PNB - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.2

📈 Positive

• 📊 Strong quarterly earnings: PAT rose to ₹4,904 Cr. from ₹1,675 Cr., a 14% QoQ increase.
• 📈 EPS of ₹13.6 and P/E of 9.05 vs industry P/E of 8.08 suggest slight undervaluation.
• 📈 Price trading above both DMA 50 (₹114) and DMA 200 (₹108) confirms bullish momentum.
• 📈 RSI at 68.3 and MACD at 2.96 indicate strong upward trend nearing overbought zone.
• 📈 PEG ratio of 0.13 implies attractive valuation relative to growth.
• 📈 ROE of 14.2% reflects solid profitability.
• 📈 FII and DII holdings increased, showing institutional confidence.

⚠️ Limitation

• 📉 ROCE of 6.30% is modest, indicating limited capital efficiency.
• 📉 Debt-to-equity ratio of 12.5 is high, typical for banks but still a risk factor.
• 📉 Volume (1.49 Cr.) is below 1-week average (2.42 Cr.), suggesting mild short-term participation.
• 📉 RSI nearing 70 may signal short-term exhaustion or pullback.

🚫 Company Negative News

• 📉 Some analysts remain cautious due to legacy asset quality concerns and high leverage.

✅ Company Positive News

• 🏦 PNB has shown consistent improvement in profitability and asset quality metrics over recent quarters.
• 📈 Government recapitalization and credit growth trends support long-term stability.

🏦 Industry

• 🏛️ Operates in the public sector banking space, which is cyclical but currently supported by credit expansion and policy tailwinds.
• 📊 Industry P/E of 8.08 reflects conservative valuation norms for PSU banks.

🧾 Conclusion

• 📈 PNB is technically strong and fundamentally improving, making it a good candidate for swing trading.
• 📍 Optimal entry: ₹118–₹120 (near support and below current price).
• 🚪 Exit if held: ₹128–₹132 (above recent high) unless momentum continues.
• ⚠️ Suitable for swing trading with moderate risk and close monitoring of RSI and volume trends.

I can also help chart PNB’s RSI and MACD trajectory to visualize ideal entry and exit zones.