PNB- A review of any trading strategy left.
Fundamentally, Punjab National Bank, surrounded by series of scams and frauds, emerges out with the latest one of $259 million by bankrupt steelmaker Bhushan Power & Steel Ltd. This is making the shares collapsing on end. After the notorious case of Nirav Modi scam, as accounted on 29th Jan 2018, PNB lost investor's faith and the share prices plunged from 181 to the lowest of 58.45 last year. It still didn't recover the trust in the market, in addition, now with the latest news about Bhushan Power & Steel Ltd. scam has shown its effect and last week again the share prices dived from 83.55 to 71.
Now comes the technical insight for the company, here and now. In last few sessions, after the fundamental effect of latest fraud news, after the gap down, prices recovered a bit from 71 to 75.40, not enough to fill up the gap prevailing as in the moment. From this, a further recovery till immediate resistance 77.25 is expected and rejection from there will see the downside dip till 71 and 67.50 (also 2005 low) acting as support below which targets are 63.35 and 60 (also 2006 low and also bullish invalidation).
On the contrary, a break of resistance level of 77.25 will have to break 80.05, which is 2013 low price. Upside targets once it breaks that level ( also ignoring the gap left on 5th low), are 83.55, 91.25 and 98.75 respectively.