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The short-term outlook for the stock of Punjab National Bank is bearish. The stock tumbled over 5 per cent on Tuesday breaking below the key ₹195-₹196 support region. Prior to this fall, the stock was consolidating sideways between ₹195 and ₹215 for just over a week. The fall on Tuesday confirms the breakout of this sideways consolidation phase. It also suggests that the stock lacks fresh buyers to take it decisively above ₹200. Intermediate bounce to ₹195 may find fresh sellers coming into the market.
The stock is likely to remain under pressure and fall to ₹180 on the back of profit booking. Traders with a short-term perspective can go short. Accumulate on rallies at ₹194. Stop-loss can be placed at ₹197 for the target of ₹181. Revise the stop-loss lower to ₹188 as soon as the stock moves down to ₹185. The bearish outlook will get negated only if the stock bounces back above ₹196 decisively. In such a scenario, the possibility of the stock revisiting ₹215 and ₹220 levels will increase. But such a strong rally looks less probable at the moment.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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