PNB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.8

📊 Chart Patterns: PNB is trading slightly above its 50 DMA (119 ₹) and comfortably above its 200 DMA (111 ₹). Current price (120 ₹) indicates strength near short-term support with resistance close to the recent high of 128 ₹.

📈 Moving Averages: Price > 50 DMA and > 200 DMA → bullish alignment, showing positive momentum.

📉 RSI: 47.3 → neutral zone, neither overbought nor oversold, suggesting balanced momentum.

📉 MACD: -0.76 → mild bearish crossover, but close to neutral, indicating consolidation rather than strong weakness.

📊 Bollinger Bands: Price near mid-band, suggesting consolidation with potential breakout if volume rises.

📊 Volume Trends: Current volume (1,05,42,960) is lower than 1-week average (1,44,59,183) → reduced trading activity, awaiting breakout confirmation.

📍 Support Levels: 118–119 ₹ (DMA 50), 111 ₹ (DMA 200), and strong base near 105 ₹.

📍 Resistance Levels: 124–125 ₹, 128 ₹ (recent high).

🔎 Trend: The stock is consolidating between 118–125 ₹. A breakout above 125–128 ₹ could trigger bullish momentum, while a drop below 118 ₹ may lead to correction toward 111 ₹.

Positive

• 📈 Strong quarterly PAT growth from 1,675 Cr. to 4,904 Cr. → significant improvement.
• 📊 EPS at 13.6 ₹ supports valuation strength.
• 📊 FII (+0.15%) and DII (+0.48%) holdings increased, showing institutional confidence.
• 💰 Attractive dividend yield of 2.43% compared to peers.

Limitation

• ⚠️ High debt-to-equity ratio (12.5) → leverage risk.
• ⚠️ ROCE at 6.30% is relatively weak compared to ROE (14.2%).
• ⚠️ Volume below average, indicating lack of strong momentum.

Company Negative News

• 📉 MACD slightly negative, showing weak short-term momentum.
• 📉 High leverage (Debt-to-equity 12.5) may limit flexibility.

Company Positive News

• 📈 Quarterly profit growth (+14% YoY).
• 📊 Price trading above both 50 DMA and 200 DMA, showing strength.
• 📊 Institutional investors increasing stake.

Industry

• 🏦 Banking sector PE at 7.89, close to PNB’s PE (8.77), indicating fair valuation.
• 📊 Sector supported by credit growth and improving profitability trends.

Conclusion

🔎 PNB is consolidating near its short-term resistance zone. Optimal entry lies around 118–120 ₹ if support holds, while exit/resistance zone is 124–128 ₹. A breakout above 128 ₹ could trigger bullish momentum toward 135–140 ₹. Long-term investors benefit from strong earnings growth and dividend yield, but must watch leverage risks. Short-term traders should monitor volume for breakout confirmation.