Shares of Punjab National Bank closed below Rs 100 apiece on Feb. 27 for the first time since June 2016 as the state-run lender battles the fallout of a Rs 13,000-crore alleged fraud involving billionaire jeweller Nirav Modi and his firms.
The bank’s stock has plunged 57.5 percent from the high on Oct. 26 last year, a day after the government announced its plan to infuse Rs 2.11 lakh crore in state-run lenders to boost capital amid mounting bad loans.
Daily Chart
PNB is trading well below its key support levels—the 50-day, 100-day and 200-day moving averages. In fact, it closed 37.5 percent below its 200-day moving average, the lowest since early 2016.
Weekly Chart
The stock declined after making a double-top and hitting an intraday high of Rs 231.6. It now stares at a double-bottom like in 2016. A double top is a popular technical analysis pattern which has two peaks of the near-same level with consolidation in between. A double-bottom is the reverse of it.
Monthly Chart
The stock price is trading below the Fibonacci 61.8 percent retracement level of Rs 131.3 per share—another key support level.
Quarterly Chart
The current price-to-book has plunged below 0.5 and the one-year forward multiple stands at over 0.5, indicating higher valuations in the future.
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