Punjab National Bank Surges on Heavy Volume Amid Sector Outperformance

High Volume Trading Highlights

On 17 Feb 2026, Punjab National Bank emerged as one of the most actively traded equities by volume on the Indian stock exchanges. The total traded volume soared to 1.51 crore shares, translating into a substantial traded value of approximately ₹185.4 crores. This volume spike is significant when compared to the stock’s average daily volumes, underscoring heightened market participation.

The stock opened at ₹120.57 and touched an intraday high of ₹125.29, marking a 3.91% rise within the trading session. The last traded price (LTP) stood at ₹125.00 as of 10:38 AM IST, reflecting a day-on-day gain of 3.28%. Notably, PNB outperformed its sector peers by 2.17% and the broader Sensex, which marginally declined by 0.06% on the same day.

Technical Momentum and Moving Averages

Punjab National Bank’s price action reveals a sustained upward trend, with the stock trading above its key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day. This alignment of moving averages is a classic bullish signal, indicating strong underlying demand and positive investor sentiment. The stock has also recorded consecutive gains over the last two trading sessions, delivering a cumulative return of 5.14% during this period.

However, despite the surge in volume, delivery volumes on 16 Feb 2026 fell by 18.46% to 51.52 lakh shares compared to the five-day average. This divergence suggests that while trading activity is high, a portion of it may be speculative or intraday in nature rather than long-term accumulation.

Volume Surge Drivers and Market Context

The surge in volume for PNB can be attributed to several factors. Firstly, the bank’s recent upgrade in mojo grade from Buy to Hold on 27 Jan 2026, with a mojo score of 68.0, may have prompted investors to reassess their positions. While the grade adjustment suggests a more cautious stance, the stock’s large market capitalisation of ₹1,39,294 crores and liquidity profile continue to attract institutional interest.

Secondly, the public sector banking sector has been witnessing selective buying, driven by improving asset quality and steady credit growth. PNB’s ability to outperform its sector by over 2% on the day indicates relative strength amid a mixed banking landscape.

Additionally, the weighted average price during the session was closer to the day’s low, implying that a significant portion of the volume was executed near the lower price range. This pattern often signals accumulation by value-conscious investors seeking to build positions without pushing prices excessively higher.

Accumulation and Distribution Signals

Analysing the volume-price relationship, the combination of rising prices and high volume generally points to accumulation. However, the dip in delivery volumes tempers this optimism, suggesting some traders may be engaging in short-term profit booking or speculative trades. The stock’s ability to maintain gains above key moving averages supports the view that institutional investors are likely accumulating shares, albeit with some volatility.

Market participants should also note the stock’s liquidity, which comfortably supports trade sizes up to ₹3.47 crores based on 2% of the five-day average traded value. This liquidity ensures that large orders can be executed without significant price disruption, a favourable trait for long-term investors and fund managers.

Valuation and Rating Insights

Punjab National Bank’s mojo grade of Hold reflects a balanced outlook, factoring in both the bank’s strengths and emerging risks. The downgrade from Buy on 27 Jan 2026 signals a more measured approach, possibly due to valuation concerns or sector headwinds. Investors should weigh the stock’s recent outperformance against its fundamental metrics and broader economic conditions.

Given the stock’s large-cap status and market cap grade of 1, it remains a core holding for many portfolios focused on public sector banks. However, the current trading range near ₹125 represents a critical juncture where investors must monitor volume trends and price action closely to confirm sustained accumulation.

Investor Takeaways and Outlook

For investors tracking Punjab National Bank, the recent volume surge accompanied by price appreciation is a positive development, signalling renewed interest and potential for further gains. The stock’s outperformance relative to its sector and the broader market reinforces its relative strength in a competitive banking environment.

Nonetheless, the moderation in delivery volumes and the Hold mojo grade advise caution. Investors should watch for confirmation of sustained accumulation through consistent volume support and price stability above key moving averages. Monitoring sector trends and macroeconomic factors will also be crucial in assessing the bank’s trajectory.

In summary, Punjab National Bank remains a liquid, large-cap public sector bank with improving technical signals and selective investor interest. While the stock is not currently rated a strong buy, its recent activity suggests it is well positioned to benefit from favourable sector dynamics and market sentiment, provided investors remain vigilant to evolving volume and price patterns.

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