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