PNB shares dip below Rs 100; trade with Rs 90 stoploss, says expert
Shares of Punjab National Bank (PNB) dipped further below its key psychological level of Rs 100 as selling pressure on the stock strengthened.
The stock dipped as much as 6.45 per cent to Rs 92, its fresh 52-week low, in intraday trade today.
PNB settled lower in 9 out of 11 sessions since the fraud in connection to jewellers Nirav Modi and his Uncle Mehul Choksi came to light.
Late night on Monday, PNB, in a filing to stock exchanges, said the amount of unauthorised transactions could go up by more than Rs 1,300 crore.
“We have to inform that quantum of reported unauthorised transactions can increase by $204.25 million (approximately),” the filing said.
The latest announcement from the PNB assumes significance against the backdrop of a probe going on into the Rs 11,400 crore scam, which is already one of the biggest in the Indian banking sector.
On February 14, the bank had detected the fraud wherein billionaire jeweller Nirav Modi and associates had allegedly acquired fraudulent letters of undertaking (LoUs) from one of the branches of the PNB for overseas credit from other Indian lenders.
Meanwhile, VK Sharma, Head - Private Broking & Wealth Management, HDFC Securities, said one can trade in PNB stock, but only with a strict stoploss.
"PNB stock is a falling knife, catching it will only worsen the situation. Traders can look into the stock with a stoploss of Rs 90-91 in the backdrop of Wednesday's intraday low of Rs 92," he told to Zee Business.