The breakout on both monthly and weekly charts has opened room for the stock to head towards 800-900 levels in the next 3-6 months, which would take the stock to a fresh 52-week high, suggest experts.
The housing finance stock rose from Rs 458 hit on 6 April 2023, to Rs 620 recorded on 7 August 2023, which translates into an upside of 37% in the last 3 months.
PNB Housing Finance stock with a market capitalization of more than Rs 16000 crore trades at a P/E multiple of 13.97x and an earnings per share (EPS) of 45.11, BSE data showed.
The stock gave a breakout from a falling trendline resistance on the monthly charts which is a positive sign for the bulls.
“PNB Housing Finance stock has broken through the descending resistance trendline to the upside on the monthly chart with higher-than-normal volumes,” Suraj Bathija, Founder & CSO at AlgoBulls, said.
“Out of 13 months, 12 were closed with a new closing price since June 2022, with only one month where stock closed in the negative. RSI is higher than level 60,” he said.
In terms of price action, the stock is trading above 5,10,30,50 100, and 200-DMA on the daily charts but below the 20-DMA.
The RSI is higher than 60 levels on the weekly chart. In addition to the stock trading above the 26 SMA, the SMA is also moving higher.
“The stock has demonstrated a bullish breakout from Cup and Handle chart pattern on strong volumes on weekly charts. The stock is even trading above the 20 SMA and has gained support on the daily chart,” highlighted Bathija.
ETMarkets.com“The fact that the stock has given a breakout and has high volatility is demonstrated by the fact that it closed above the upper band of Bollinger Bands. The stock is likely to reach 820 from CMP of Rs 630 and target 2 as 975 in next 3 to 6 months,” he recommends.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)