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Business News/ Markets / Stock Markets/  PNB share price hits 52-week high. Experts see more upside
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PNB share price hits 52-week high. Experts see more upside

PNB share price may go up to ₹87 apiece levels in near term, say stock market experts

Punjab National Bank share has been in uptrend after expetiencing breakout on technical chart pattern, say experts. (Photo: Mint)Premium
Punjab National Bank share has been in uptrend after expetiencing breakout on technical chart pattern, say experts. (Photo: Mint)

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.

Also Read: SBI, M&M, Axis Bank to LT: Motilal Oswal recommends 14 stocks to buy after BJP win in assembly elections

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.

Also Read: At record high! Sensex jumps 1,100 points, Nifty over 300 points: 5 reasons why

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."

PNB share price target

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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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 04 Dec 2023, 10:06 AM IST
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