Punjab & Sind Bank stock at 52-week high; jumps 56% this year; should you buy it?

Updated: 06 Dec 2022, 02:55 PM IST

Shares of Punjab & Sind Bank jumped 12% to their 52-week high on BSE, driven by technical factors. Analysts say the stock has the potential to rise further and can reach 40 in the coming months, with support at 21.

Analysts say technical factors are supporting the stock and it can rise even further.

Shares of Punjab & Sind Bank jumped more than 17 percent to their fresh 52-week high of 29.40 on BSE in intraday trade on December 6.

Currently, the stock is trading higher than its 5-day, 20-day, 100-day and 200-day moving averages.

The stock has been on a roll this year so far; it is up 56 percent as of December 5 closing on BSE against a nearly 8 percent gain in the benchmark Sensex.

Punjab & Sind Bank stock in last one year.

There is no significant fresh fundamental trigger for the stock to move higher. Analysts say technical factors are supporting the stock and it can rise even further.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher pointed out that the stock, after the long consolidation phase near 16-17 levels, has given a decent breakout above the 200 DMA (daily moving average) of 17.90 on the weekly chart and also has moved past the previous peak of 23 to strengthen the trend.

"The stock has retraced more than 23.60 percent of the fall from 72 to 9 and has prominent strength to carry on the momentum till 38.20 percent of the retracement which is at 34. The near term immediate support would be at 24 which breached below shall slightly weaken the bias. The RSI is also on the rise with potential visible for further upward move," said Parekh.

Punjab & Sind Bank technical chart.

Another analyst Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers, observed that since the beginning, this counter has corrected almost 92 percent. At the current juncture, this stock is stabilized between 15-25 which is proving to be its historical support.

For the last two trading sessions, buying interest is seen on the counter along with massive volume.

"The stock will only show more strength if it sustains above 30 which is resistance according to its historical trend line," said Patel.

"On the indicator front, the monthly MACD is displaying a bullish divergence along with a bullish crossover near the zero line hinting at more upside. The monthly DMI has made a bullish indication thus there is a possibility for further upside. One can start accumulating this counter between 25-28. The upside is seen till 40 in the coming months while support is seen at 21," said the analyst.

Punjab & Sind Bank tech chart

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.

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First Published: 06 Dec 2022, 11:53 AM IST