Key Events This Week
23 Feb: Sharp 17.4% surge in open interest amid bearish market signals
24 Feb: Technical downgrade to Sell rating as momentum weakens
26 Feb: Mildly bearish momentum shift with volume-based accumulation signs
27 Feb: Bearish momentum intensifies despite mixed volume and Dow Theory signals
23 February: Open Interest Surges Amid Bearish Signals
On 23 February 2026, PNB Housing Finance witnessed a notable 17.4% increase in open interest in its derivatives segment, rising to 30,422 contracts from 25,916 the previous day. This surge accompanied a futures volume of 14,200 contracts and a combined futures and options value of approximately ₹19,775 crores, highlighting substantial trading activity.
Despite this heightened derivatives interest, the stock price declined by 1.29% to close at Rs.837.20, underperforming the Sensex which gained 0.39% that day. The stock traded below all key moving averages, signalling a bearish technical setup. Delivery volumes also fell sharply by 67.94% compared to the five-day average, indicating reduced investor conviction.
The increase in open interest alongside falling prices suggests fresh bearish positioning or hedging activity, with traders possibly anticipating further downside or volatility. The stock’s market cap stood at ₹21,739.44 crores, categorising it as a small-cap, and its Mojo Score had deteriorated to 40.0, prompting a downgrade to a Sell rating earlier in January.
24 February: Technical Downgrade Reflects Growing Bearish Momentum
On 24 February, the stock closed at Rs.833.10, down 0.49%, continuing its downward trend amid a volatile intraday range between Rs.834.00 and Rs.853.95. Technical indicators confirmed a shift from mildly bearish to outright bearish momentum. The Moving Average Convergence Divergence (MACD) remained bearish on weekly charts and mildly bearish monthly, while the Know Sure Thing (KST) oscillator echoed this negative sentiment.
The Relative Strength Index (RSI) hovered neutrally, indicating no immediate oversold or overbought conditions. Bollinger Bands on weekly charts were bearish, signalling increasing selling pressure. The stock traded below its short- and medium-term moving averages, reinforcing the downtrend.
Volume indicators showed mixed signals: On-Balance Volume (OBV) was neutral weekly but bullish monthly, suggesting some longer-term accumulation despite short-term selling. Relative to the Sensex, the stock underperformed over the week and year-to-date, though it outperformed over the last month and longer horizons.
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26 February: Mildly Bearish Momentum Amid Signs of Accumulation
The stock rebounded modestly on 26 February, closing at Rs.848.05, up 1.91% from the previous day. The intraday range of Rs.833.45 to Rs.859.00 reflected moderate volatility. Technical momentum shifted from outright bearish to mildly bearish, with the MACD histogram narrowing and the Know Sure Thing (KST) indicator improving slightly on monthly charts.
RSI remained neutral, while Bollinger Bands suggested a mild downward bias but contained volatility. Daily moving averages stayed bearish, indicating resistance ahead. Notably, On-Balance Volume (OBV) was mildly bullish weekly and outright bullish monthly, signalling potential accumulation despite subdued price action.
Dow Theory presented mixed signals, with a mildly bullish weekly trend contrasting a mildly bearish monthly trend. The stock’s long-term returns remained robust, significantly outperforming the Sensex over three and five years, underscoring strong fundamentals despite short-term technical challenges.
27 February: Bearish Momentum Intensifies Despite Mixed Volume Signals
On the final trading day of the week, PNB Housing Finance closed at Rs.828.80, down 2.27%, with an intraday range of Rs.843.75 to Rs.858.55. Technical momentum deteriorated again, shifting from mildly bearish back to outright bearish. The MACD remained bearish weekly and mildly bearish monthly, while moving averages and Bollinger Bands confirmed increased selling pressure.
The Know Sure Thing (KST) indicator aligned with this bearish outlook. Dow Theory readings were mixed, mildly bullish weekly but mildly bearish monthly, while OBV showed mildly bullish weekly and bullish monthly signals, suggesting some investor accumulation amid the downtrend.
Relative to the Sensex, the stock underperformed year-to-date but outperformed over one month and longer periods. The Mojo Score remained at 34.0 with a Sell rating, reflecting cautious sentiment amid technical weakness and sector headwinds.
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Daily Price Performance vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-23 | Rs.837.20 | -1.29% | 36,817.86 | +0.39% |
| 2026-02-24 | Rs.833.10 | -0.49% | 36,530.09 | -0.78% |
| 2026-02-25 | Rs.849.00 | +1.91% | 36,679.75 | +0.41% |
| 2026-02-26 | Rs.848.05 | -0.11% | 36,748.49 | +0.19% |
| 2026-02-27 | Rs.828.80 | -2.27% | 36,322.56 | -1.16% |
Key Takeaways
Bearish Technical Momentum: The week saw a clear shift towards bearish momentum, with the stock trading below all key moving averages and technical indicators such as MACD and Bollinger Bands signalling increased selling pressure.
Derivatives Activity Indicates Caution: A sharp 17.4% rise in open interest on 23 February suggests fresh bearish positioning or hedging, reflecting market participants’ anticipation of further downside or volatility.
Mixed Volume Signals: While short-term volume trends and delivery volumes declined, monthly On-Balance Volume readings remained bullish, indicating possible accumulation by longer-term investors despite near-term weakness.
Mojo Score and Rating Downgrade: The downgrade to a Sell rating with a Mojo Score of 34.0 highlights increased caution amid deteriorating technical and fundamental outlooks.
Relative Performance: The stock underperformed the Sensex over the week and year-to-date but outperformed over the last month and longer-term horizons, reflecting a complex performance profile.
Conclusion
PNB Housing Finance Ltd’s week was characterised by heightened volatility and a pronounced shift towards bearish technical momentum. Despite a brief midweek recovery, the stock closed the week lower, underperforming the broader market. The surge in derivatives open interest and downgrade to a Sell rating underscore growing investor caution. Mixed volume signals suggest some underlying accumulation, but the prevailing technical indicators caution against expecting an immediate reversal. Investors should monitor key resistance levels and volume trends closely, balancing the stock’s strong long-term fundamentals against near-term technical challenges and sector headwinds.
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