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  • Category: Miscellaneous

    Is it the right time to buy Punjab National Bank (PNB) after fall of about 17% in two days?

    Recent news of Rs. 11333 cr. fraud in Punjab National Bank (PNB) causes PNB share to fall about 17% in two consecutive sessions. Is this the right time to buy the stock because of cheap share price? If the PNB recovers very rapidly within a month, one can get 17% return on this particular share.
    What are your views? Is this wise decision to buy PNB share at the current level or we should just watch the price movement?
  • #626416
    I am also tracking this script. I think it will go down further in near future. I am planning to purchase this script below 120.
    Beware! I question everything and everybody.

  • #626417
    I think waiting for another 3 or 4 days is better. The chances of further coming down are there as far as my thinking goes. Let us be tracking it and take a decision at the correct moment. What is the prospectus of again increasing also we may have to see?
    drrao
    always confident

  • #626420
    [Response removed by Admin. Read forum policies.]

  • #626437
    Day by day, I am losing confidence in public sector banks. SBI reported losses in their quarterly results. And now a big scam from PNB.
    Regarding your thread, it is always better to buy any stock when it rebounds and not to buy when a stock falls. And that too the rebound should happen with high volumes.

  • #626439
    Punjab National Bank ranks third or fourth in the list of top 10 national banks in India. If you see the one year low its is 128 and the one year high it is 231. Today there has been a block deal of 386,305 shares at Rs 136 t a value of 5.26 Cr ( must be a big investor or a fund house that would hold it with a long term outlook).

    Now if any well traded stock fall drastically, then people are tempted to buy it, this is called a "Bottom fishing" but for some it practically becomes a task of "Catching a falling knife." So, buying depends on your risk appetite and the ability to hold the share of a longer duration without needing to book a loss and exit.

    What is generally followed is
    1.Wait for the dust to settle
    2.Don't buy when it triggers a lower circuit lock (a 10% fall)
    3. Closely track until it turns green and starts to move up
    4.Keep a watch for good news, a Government or a FM assurance that it will step in to stem the loss, most of the money has been traced and would be recovered in due course
    5.Start entering in a progressive fashion of 10 -15% of the total you want to hold. For instance, if you want to have 500 shares of PNB, from tomorrow you can start pickingup 50 and then track and then start picking.
    6. Two of the recent shares that have fallen and on the raise are Sanwaria and Godawari Power, if you see the monthly chart, you'll get an idea of how this works.

  • #626901
    PNB today has fallen to a yearly low of around 113. is more likely to fall further. Since the scam broke out, almost everyday there are large block deals ( buying lakhs of shares) has been happening. (http://www.moneycontrol.com/stocks/marketstats/blockdeals/view_deals.php?sc_did=PNB05#PNB05&utm_source=IW_DATA_stockpage)


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