Key Events This Week
2 Feb: Technical momentum shifts to bearish, mojo grade downgraded to Sell
3 Feb: Valuation metrics improve, rating remains Sell amid asset quality concerns
6 Feb: Week closes lower at Rs.27.11, underperforming Sensex
2 February: Technical Momentum Turns Bearish Amid Price Pressure
Punjab & Sind Bank opened the week under pressure, closing at Rs.26.90, down 3.55% from the previous close of Rs.27.89. This decline coincided with a notable shift in technical momentum, as key indicators signalled a transition from mildly bearish to a more pronounced bearish trend. The stock traded within a range of Rs.26.74 to Rs.27.59, remaining closer to its 52-week low of Rs.25.29 than its high of Rs.50.49, underscoring ongoing weakness.
The downgrade of the mojo grade to Sell reflected growing caution among investors amid weakening price action. Technical indicators such as daily moving averages remained firmly bearish, with the stock trading below the 50-day and 200-day averages. The monthly MACD and Bollinger Bands also pointed to increased downward pressure, while the weekly RSI hovered in a neutral zone, offering no immediate relief. This bearish technical backdrop set the tone for the week’s trading.
3 February: Valuation Metrics Improve but Challenges Persist
On 3 February, Punjab & Sind Bank’s stock rebounded modestly, closing at Rs.27.20, up 1.12% on the day. This uptick followed the release of valuation data indicating a shift from fair to attractive valuation levels. The bank’s price-to-earnings ratio stood at 15.74, and the price-to-book value ratio was 1.37, both signalling improved price attractiveness relative to historical averages and peer benchmarks.
Despite this, the overall mojo grade remained at Sell, reflecting persistent concerns about asset quality and profitability. The net non-performing assets to book value ratio remained elevated at 5.72%, while return on equity was a modest 8.71%. These fundamentals tempered enthusiasm, as investors weighed the improved valuation against ongoing operational challenges. The stock’s trading volume increased significantly to 81,480 shares, indicating heightened market interest amid mixed signals.
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4–6 February: Mixed Price Movements Amid Market Volatility
Following the valuation update, Punjab & Sind Bank’s stock showed minor fluctuations. On 4 February, the price edged up 0.44% to Rs.27.32, supported by a surge in volume to 2,84,959 shares. The Sensex also gained 0.37%, reflecting a broadly positive market mood. However, the stock failed to sustain this momentum, slipping 0.15% on 5 February to Rs.27.28 amid lower volume and a Sensex decline of 0.53%.
On the final trading day of the week, 6 February, the stock closed at Rs.27.11, down 0.62%, while the Sensex inched up 0.10%. The week ended with Punjab & Sind Bank underperforming the benchmark index, highlighting the persistent bearish technical momentum and cautious investor stance despite improved valuation metrics.
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Daily Price Performance vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.26.90 | -3.55% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.27.20 | +1.12% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.27.32 | +0.44% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.27.28 | -0.15% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.27.11 | -0.62% | 36,730.20 | +0.10% |
Key Takeaways
Bearish Technical Momentum: The week began with a clear shift to bearish technical indicators, including bearish MACD on monthly charts, bearish Bollinger Bands, and daily moving averages below key levels. This technical deterioration weighed heavily on the stock’s price action.
Valuation Appeal Amid Challenges: Despite the negative price trend, valuation metrics improved, with a P/E of 15.74 and a PEG ratio of 0.42 signalling attractive pricing relative to earnings growth. However, elevated net NPA levels at 5.72% and modest profitability metrics limited positive sentiment.
Underperformance vs Sensex: Punjab & Sind Bank’s 2.80% weekly decline contrasted with the Sensex’s 1.51% gain, highlighting the stock’s continued struggle to keep pace with broader market gains amid sector-specific headwinds.
Volume and Volatility: Trading volumes fluctuated significantly, peaking on 4 February with nearly 2.85 lakh shares traded, reflecting episodic investor interest amid volatile price movements.
Conclusion
Punjab & Sind Bank’s performance over the week ending 6 February 2026 was marked by a persistent bearish technical momentum and cautious investor sentiment despite improved valuation metrics. The stock’s 2.80% decline against a 1.51% Sensex gain underscores ongoing challenges in regaining market confidence. Elevated asset quality concerns and modest profitability continue to temper enthusiasm, even as valuation ratios suggest some price attractiveness.
Investors should remain attentive to technical signals and fundamental developments, particularly asset quality trends and quarterly results, to gauge any potential shift in the stock’s outlook. For now, the cautious mojo grade of Sell reflects the prevailing uncertainty and risk in the near term.
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