The stock which hit a high of Rs 1,470 on 17th November 2021 failed to hold on to the momentum. The stock found support a year after around Rs 356 on 17th November 2022 – which translates into a fall of more than 70%.
The stock, after hitting the 52-week low, bounced back to hit a fresh 52-week high in August. The stock hit a 52-week high of Rs 789 on 4th August 2023 which translates into an upside of more than 100% from the November 2022 lows.
The fintech firm rose more than 8% in a week, 12% in a month, and more than 30% in the last 3 months, Trendlyne data showed.
Short-term traders can look to buy the stock on dips for a possible target of Rs 870 levels in the next 3-4 weeks, suggest experts.
The stock has formed a rounding bottom pattern on the daily charts and is on the verge of a breakout. The neckline of the same is placed at a little over Rs 800 level.
In terms of price action, the stock is trading well above most of the short- and long-term moving averages such as 5,10,30,50,100 and 200-DMA on the daily charts.
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“PB Fintech was one of the worst underperformers from the new-aged fin-tech sector posts listing. It has deteriorated over 75% in the one-year time frame and the stock price went down from Rs 1,467 odd all-time high to an all-time low around Rs 3,56,” Kiran Jani CIRA, Head of Technical Research at Jainam Broking, said.
“Post registering an all-time low around Rs 356, stock prices started rising and made a big rounding bottom near an all-time low. Since December 2022 we are seeing prices have started moving up in a higher top / higher bottom pattern and registered 100% gain in the last 7 months,” he said.
“At the current juncture, we can see a bullish price pattern breakout with bullish divergence visible on the chart. The price has formed a big rounding bottom pattern and is trading into the rising channel,” added Jani.
We are seeing that the stock is trading above its 50-SMA after a long time on the daily charts. Initially, we witnessed that the 50-SMA acted as a stiff resistance.
“Looking at the relative strength index (RSI-14) shows the multiple bullish divergences. Considering the current chart pattern, we are expecting prices to touch Rs 870 if prices hold Rs 690 levels which will be the stop loss,” recommends Jani.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)