Stock market today: Shares of Punjab National Bank (PNB) witnessed huge buying interest during morning deals on Monday. PNB share price today opened with big upside gap at ₹83.15 apiece levels on NSE and went on to hit intraday high of ₹83.95 per share levels, which turned out a new 52-week peak for PNB shares. PNB share price rebounded strongly after touching intraday low of ₹82.30 per share afer profit booking trigger at 52-week high.
According to stock market experts, PNB share price is rising because most of the PSU stocks are witnessing buying interst after state assembly election results. They said that market is expecting the pro-BJP assembly results as an edge for incumbent government at center in Lok Sabha elections in 2024. They went on to add that Congress losing in these three states is expected to dent I.N.D.I.A. alliance, which means advantage BJP in upcoming Lok Sabha polls 2024. So, economic reforms, focus on PSU and state-owned banks' profitability is expected to remain in government's focus.
Connecting PNB share price rally with BJP's win in state assembly elections, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "PNB share price climbed to a new 52-week high because PSU stocks have been under rada of stock market bulls since morning. This is beacause BJP has won three out of four states in recently ended state assembly elections. Fourth one is Telanga where BJP has minimal presence. Hence, BJP has continued its dominance in Hindi heartland, which is expected to continue in upcoming Lok Sabha elections 2024 as well."
"As state assembly elections results are giving advantage to BJP in Lok Sabha polls, market is in buying mode as economic reforms, focus on PSU comnpanies' and banks' profitailty is expected to remain in government's focus," saidm Avinash Gorakshkar.
Expecting more upside in PNB shares, Sumeet Bagadia, Executive Director at Choice Broking said, “PNB share price has experienced a breakout from a daily falling trendline after consolidating at a support level. This breakout is accompanied by robust trading volume and has formed a Bullish candle, indicating strong bullish momentum in the stock. Furthermore, PNB share price is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This alignment above crucial EMAs strengthens the bullish outlook, suggesting the potential for sustained upward price movement.”
Choice Broking expert went on to add that the Relative Strength Index (RSI) is presently at 63.12 and is trending upwards, signaling increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has shown a positive crossover from the oversold region, further contributing to the bullish sentiment. The confluence of these technical indicators implies that PNB may have the potential to reach a target price of ₹87 in the near term. It is advisable to consider buying on dips, particularly near ₹78 apiece levels.
Sumeet Bagadia advised PNB shareholders to hold the scrip with stop loss at ₹77.50 per share levels for near term target of ₹87 levels.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.RR
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