PNB Scam effect: Amid heavy sell0ff by the Foreign Institutional Investors (FIIs), especially in the banking and finance, Auto and IT stocks, the PNB scam of Rs 3,800 have done further damage to the PNB counter. On Monday, the counter had crashed around 11 per cent from its Friday closing. As per the stock market experts, this crash is caused mainly by the current negative sentiment that engulfed the Punjab National Bank stockholders. However, they are of the opinion that once the FII anger over budget surcharge being levied on the stock market investors in their short term capital gains cools down and they once again begins fresh buying, PNB stock can be a better option to buy if it touches the levels of Rs 67-68 per stock in next few trading sessions.
Speaking on the current crash in the Punjab National Bank share price Prakash Pandey, Head of Research at Fairwealth Securities said, “Punjab National bank share is not the only share that has crashed today. In fact, the majority of the public sector bank shares have fallen today. However, the Rs 3,800 crore scam added further salt to the stock market investor’s wounds. This combination of negative sentiments led to the tank of the Punjab National Bank share price to the tune of near 10.64 per cent. However, I would recommend stock market investors to take a buy position in the Punjab National Bank stocks if it touches Rs 67-68 per stock levels.” On target that a stock market investor should keep in mind if he or she wishes to buy Punjab National Bank shares at the given levels, Prakash Pandey of Fairwealth Securities said, “One can keep a target of Rs 80 per stock for short-term maintaining a strict stop loss at Rs 65.”
Elaborating upon the heavy selloff triggered into the Indian indices today Prakash Pandey said, “The Union Budget 2019 has a proposal to levy a surcharge on small erm capital gains on equities, which hasn’t gone down well among the stock market investors, especially the FIIs. As FIIs hold near 49 per cent stock in the Indian indices, their selloff in banking and finance, IT and auto stocks have triggered heavy tank at the Indian bourses.” He said that the market crash is limited and Indian investors should take it as a buying option as once the FIIs anger cools down, they would indulge in fresh buying giving impetus to the Indian equity market.
Standing in sync with Prakash Pandey’s views SEBI registered technical equity analyst Simi Bhaumik said, “Punjab National Bank has support at Rs 72/73 per stock levels. Once, this level is broken it will go further down at around Rs 67-68 levels as in short-term, it doesn’t seem it would go below Rs 65 to 66 levels.”