PNB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | PNB | Market Cap | 1,25,687 Cr. | Current Price | 109 ₹ | High / Low | 135 ₹ |
| Stock P/E | 7.74 | Book Value | 124 ₹ | Dividend Yield | 2.65 % | ROCE | 6.30 % |
| ROE | 14.2 % | Face Value | 2.00 ₹ | DMA 50 | 114 ₹ | DMA 200 | 115 ₹ |
| Chg in FII Hold | 0.46 % | Chg in DII Hold | -0.04 % | PAT Qtr | 5,100 Cr. | PAT Prev Qtr | 4,904 Cr. |
| RSI | 43.3 | MACD | -0.42 | Volume | 1,68,18,211 | Avg Vol 1Wk | 1,56,00,148 |
| Low price | 89.4 ₹ | High price | 135 ₹ | PEG Ratio | 0.11 | Debt to equity | 12.3 |
| 52w Index | 43.6 % | Qtr Profit Var | 13.1 % | EPS | 14.1 ₹ | Industry PE | 7.99 |
Chart & Trend Analysis:
PNB is trading at ₹109, below both its 50 DMA (₹114) and 200 DMA (₹115), showing weakness near key averages. RSI at 43.3 indicates bearish momentum. MACD at -0.42 confirms negative bias. Bollinger Bands show price near the lower band, reflecting selling pressure. Volume (1,68,18,211) is above the 1-week average (1,56,00,148), suggesting active participation on the downside.
Momentum Signals:
- Short-term momentum is bearish with price struggling below DMA levels.
- Entry Zone: ₹100–₹105 (support near recent lows).
- Exit Zone: ₹120–₹125 (resistance near DMA cluster).
- Trend Status: Consolidating with bearish undertone; reversal not confirmed.
Positive
- Attractive P/E (7.74) compared to industry average (7.99).
- Strong ROE (14.2%) supports profitability.
- Dividend yield of 2.65% adds income appeal.
- Quarterly PAT growth of 13.1% (₹5,100 Cr vs ₹4,904 Cr).
- EPS of ₹14.1 provides valuation comfort.
Limitation
- ROCE at 6.30% is modest, showing limited efficiency.
- High debt-to-equity ratio (12.3) typical of banks but raises leverage concerns.
- RSI below 50 and negative MACD indicate weak momentum.
- Price trading below both 50 DMA and 200 DMA confirms technical weakness.
Company Negative News
- Weak ROCE and high leverage remain structural challenges.
- Bearish technical signals suggest limited near-term upside.
Company Positive News
- Quarterly profit growth reinforces earnings momentum.
- FII inflows (+0.46%) show foreign investor confidence.
- Dividend yield supports long-term investor interest.
Industry
- Industry P/E at 7.99 is in line with PNB’s valuation, showing fair pricing.
- Banking sector supported by credit growth and government initiatives.
Conclusion
PNB is consolidating below key moving averages with bearish RSI and negative MACD. While fundamentals remain attractive with strong ROE, dividend yield, and profit growth, technical signals suggest caution. Tactical entries near ₹100–₹105 with exits around ₹120–₹125 provide a balanced setup. Long-term investors can hold for valuation comfort, while short-term traders should wait for momentum reversal before entry.