PNB Stock In Tight Range After Q1 Earnings: SEBI Analyst Sees Bullish Bias If ₹101 Holds

Punjab National Bank (PNB) shares were down over 2% at ₹105.80, reflecting the broader Nifty PSU Bank index’s movements, despite posting decent June quarter (Q1FY26) earnings on Wednesday.

While PNB’s net profit slumped 49% to ₹1,675 crore, it was heavily weighed down by a sharp spike in tax expenses, which more than doubled to ₹5,083 crore.

Total income rose 15.7% to ₹37,231 crore, while operating profit increased to ₹7,081 crore. Net interest income inched up 1% to ₹10,578 crore, with the net interest margin stable at 2.84%.

Asset quality saw improvement, with gross NPA ratio falling to 3.78%, while net NPA was down to 0.38%. Provisions halved to ₹396 crore.

Technical Analysis

While PNB stock is showing encouraging structural signs both technically and fundamentally, it remains stuck in a tight consolidation phase, said SEBI-registered analyst Rajneesh Sharma.

On the weekly chart, the stock has been on a higher high–higher low structure since mid-2022, Sharma said.

After breaking its falling trendline earlier in 2025, PNB shares now trade within a rectangle zone between ₹101 and ₹111. A firm breakout above ₹111.46 could unlock upside toward ₹138, while a breach below ₹101 may flip the near-term trend negative, with support levels at ₹93.53 and ₹84.48, he added.

The rising green trendline remains intact, preserving the long-term bullish structure.

Overall, PNB’s improving asset quality, marked by the lowest NPA in years and reduced provisioning, is supporting earnings. However, pressure on NII and NIM from rising deposit costs and a normalizing rate cycle is weighing on core performance, the analyst said.

The price is technically coiled and awaiting a breakout, he added. Until that materializes, investors should stay cautious near ₹111 and maintain a bullish bias only as long as ₹101 holds strong.

Retail sentiment on Stocktwits turned ‘neutral’ from ‘bullish’ a day ago.

Year-to-date, the stock has gained 2.8%

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