Punjab National Bank Technical Momentum Shifts to Bullish Amid Strong Long-Term Returns

Technical Trend Evolution and Moving Averages

Recent technical assessments reveal that PNB’s daily moving averages have turned bullish, signalling a positive short-term momentum. The stock closed at ₹124.50 on 14 Jan 2026, up 1.06% from the previous close of ₹123.20. The daily moving averages have crossed key resistance levels, supporting the upward price trajectory. This bullish crossover is a critical signal for traders, indicating that the stock may sustain its upward momentum in the near term.

Moreover, the stock’s 52-week high stands at ₹128.25, with a low of ₹85.50, highlighting a significant recovery over the past year. The current price is approaching the upper band of this range, reinforcing the bullish technical outlook.

MACD and Momentum Oscillators

The Moving Average Convergence Divergence (MACD) indicator presents a nuanced picture. On a weekly basis, the MACD remains mildly bearish, reflecting some caution among medium-term investors. However, the monthly MACD has turned bullish, suggesting that the longer-term momentum is improving. This divergence between weekly and monthly MACD readings indicates that while short-term volatility may persist, the broader trend favours accumulation.

Complementing this, the Know Sure Thing (KST) indicator remains mildly bearish on both weekly and monthly charts, signalling that momentum has not fully accelerated yet. Investors should watch for a potential KST turnaround to confirm sustained bullishness.

RSI and Bollinger Bands Analysis

The Relative Strength Index (RSI) currently shows no definitive signal on both weekly and monthly timeframes, hovering in a neutral zone. This suggests that the stock is neither overbought nor oversold, providing room for further price appreciation without immediate risk of a reversal due to overextension.

In contrast, Bollinger Bands have turned bullish on both weekly and monthly charts. The stock price is trading near the upper band, indicating strong buying pressure and potential continuation of the upward trend. This technical setup often precedes sustained rallies, especially when confirmed by other indicators.

Volume and Dow Theory Confirmation

On-Balance Volume (OBV) readings are bullish across weekly and monthly periods, signalling that volume is supporting the price rise. This is a positive confirmation that institutional investors may be accumulating shares, lending credibility to the price momentum.

Dow Theory assessments also reflect a mildly bullish stance on both weekly and monthly charts, reinforcing the technical consensus that the stock is in an upward phase of its market cycle.

Comparative Performance and Market Context

PNB’s price momentum is further validated by its impressive returns relative to the Sensex. Over the past year, PNB has delivered a 30.5% return compared to the Sensex’s 9.56%, showcasing its outperformance within the public sector banking space. Over a five-year horizon, the stock has surged 240.63%, vastly outpacing the Sensex’s 68.97% gain. This long-term outperformance underscores the bank’s improving fundamentals and market positioning.

Year-to-date, PNB has posted a modest 0.73% gain, while the Sensex has declined by 1.87%, indicating relative resilience amid broader market pressures. The one-month return of 5.69% versus the Sensex’s negative 1.92% further highlights the stock’s recent strength.

Mojo Score Upgrade and Analyst Sentiment

Reflecting these technical improvements, MarketsMOJO has upgraded Punjab National Bank’s Mojo Grade from Sell to Hold as of 11 Sep 2025, with a current Mojo Score of 65.0. This upgrade signals a shift in analyst sentiment, recognising the stock’s improving technical and fundamental outlook. However, the Market Cap Grade remains at 1, indicating that the stock is still relatively small in market capitalisation terms compared to larger peers.

Investors should note that while the technical trend has improved from mildly bullish to bullish, some indicators such as weekly MACD and KST remain cautious, suggesting that a full confirmation of a strong uptrend is still in progress.

Risks and Considerations

Despite the encouraging technical signals, investors should remain cautious of potential volatility. The weekly MACD and KST indicators’ mildly bearish readings suggest that short-term corrections or consolidation phases could occur. Additionally, the RSI’s neutral stance implies that the stock is not yet in an overbought condition, but also lacks strong momentum confirmation from this oscillator.

Furthermore, the public sector banking sector remains sensitive to macroeconomic factors such as credit growth, asset quality, and regulatory changes. Any adverse developments in these areas could temper the bullish technical outlook.

Conclusion: A Bullish Technical Setup with Room to Grow

Punjab National Bank’s recent technical parameter changes indicate a positive shift in price momentum, supported by bullish moving averages, Bollinger Bands, and volume trends. While some momentum oscillators remain cautious, the overall technical trend has improved from mildly bullish to bullish, signalling potential for further gains.

With a strong relative performance against the Sensex and an upgraded Mojo Grade to Hold, PNB presents a compelling case for investors seeking exposure to the public sector banking sector. However, prudent investors should monitor key indicators for confirmation of sustained momentum and remain mindful of sector-specific risks.

Key Technical Metrics Summary:

• Current Price: ₹124.50 (up 1.06% on 14 Jan 2026)


• 52-Week Range: ₹85.50 - ₹128.25


• Moving Averages (Daily): Bullish


• MACD: Weekly - Mildly Bearish; Monthly - Bullish


• RSI: Neutral on Weekly and Monthly


• Bollinger Bands: Bullish on Weekly and Monthly


• KST: Mildly Bearish on Weekly and Monthly


• OBV: Bullish on Weekly and Monthly


• Dow Theory: Mildly Bullish on Weekly and Monthly


• Mojo Score: 65.0 (Hold, upgraded from Sell on 11 Sep 2025)

Investors should continue to analyse these technical indicators in conjunction with fundamental developments to make informed decisions about Punjab National Bank’s stock.

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