PNB Housing Finance: A Multi-Year Breakout Could Be Around the Corner
PNB Housing Finance has spent almost nine years trading below its all-time high. That phase now appears to be ending.
Both the monthly and weekly charts are showing compression just below a long-term falling trendline. If this resistance breaks, I expect the stock to revisit its previous all-time high within the next six months.
Technical View
The monthly chart shows price testing a resistance trendline that has rejected every rally since 2017.
Unlike previous attempts, this time the stock is holding close to resistance instead of getting rejected. That's usually a sign of accumulation.
A weekly close above ₹1,100-1,120 would confirm the breakout.
Support is placed at ₹1,020-1,050. As long as ₹990 holds, the bullish structure remains intact.
Why I'm Bullish
• Multi-year trendline breakout is near.
• Higher highs and higher lows since the 2020 bottom.
• Trading above the 100 and 200-period moving averages.
• Long-term consolidation is almost complete.
Large breakouts often come after years of sideways movement, not after vertical rallies.
Fundamentals
The fundamentals continue to support the technical setup.
Market Cap: ₹27,463 Cr
P/E: 11.7
Price to Book: 1.40
Book Value: ₹737.53
ROE: 11.92%
Dividend Yield: 0.78%
More importantly, 83.33% of analysts maintain a Buy rating, showing strong institutional confidence.
Derivatives View
Futures are showing Long Build-up.
Open Interest has increased by 6.11% while price continues to rise.
Fresh buying instead of short covering generally supports a bullish continuation.
Trading Plan
Accumulation: ₹1,020-1,050
Stop Loss: ₹990
Targets:
₹1,200
₹1,400 (Previous ATH)
Higher if the breakout sustains.
Final View
This is not a momentum chase.
This is a stock sitting just below a nine-year resistance.
If buyers manage to push price above the breakout zone, PNB Housing Finance could enter a fresh long-term uptrend. In my view, reclaiming the previous all-time high over the next six months is a realistic possibility.
PNB Housing Finance has spent almost nine years trading below its all-time high. That phase now appears to be ending.
Both the monthly and weekly charts are showing compression just below a long-term falling trendline. If this resistance breaks, I expect the stock to revisit its previous all-time high within the next six months.
Technical View
The monthly chart shows price testing a resistance trendline that has rejected every rally since 2017.
Unlike previous attempts, this time the stock is holding close to resistance instead of getting rejected. That's usually a sign of accumulation.
A weekly close above ₹1,100-1,120 would confirm the breakout.
Support is placed at ₹1,020-1,050. As long as ₹990 holds, the bullish structure remains intact.
Why I'm Bullish
• Multi-year trendline breakout is near.
• Higher highs and higher lows since the 2020 bottom.
• Trading above the 100 and 200-period moving averages.
• Long-term consolidation is almost complete.
Large breakouts often come after years of sideways movement, not after vertical rallies.
Fundamentals
The fundamentals continue to support the technical setup.
Market Cap: ₹27,463 Cr
P/E: 11.7
Price to Book: 1.40
Book Value: ₹737.53
ROE: 11.92%
Dividend Yield: 0.78%
More importantly, 83.33% of analysts maintain a Buy rating, showing strong institutional confidence.
Derivatives View
Futures are showing Long Build-up.
Open Interest has increased by 6.11% while price continues to rise.
Fresh buying instead of short covering generally supports a bullish continuation.
Trading Plan
Accumulation: ₹1,020-1,050
Stop Loss: ₹990
Targets:
₹1,200
₹1,400 (Previous ATH)
Higher if the breakout sustains.
Final View
This is not a momentum chase.
This is a stock sitting just below a nine-year resistance.
If buyers manage to push price above the breakout zone, PNB Housing Finance could enter a fresh long-term uptrend. In my view, reclaiming the previous all-time high over the next six months is a realistic possibility.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.