PNB share price: Will the short-term outperformance continue? Jay Thakkar answers
PNB shares: Thakkar noted that “a lot of shorts” had been built in several public sector banking names, and the recent move suggests some of those bearish positions are now being unwound.
- Jul 23, 2026,
- Updated Jul 23, 2026 3:52 PM IST
Punjab National Bank (PNB) could be setting up for a near-term rebound as short-covering gathers pace in PSU banking stocks, according to ICICI Securities’ Jay Thakkar. The market expert said the state-run lender has emerged as one of the outperformers over the past week to 10 days, even as leadership within the banking pack appears to be shifting away from private lenders.
PNB’s near-term setup turns constructive
Responding to a viewer query on PNB bought at Rs 112, Thakkar, who is CMT, EPATian, Head Derivatives & Quant Research - Vice President at ICICI Securities, said the stock remains technically well-placed as long as key support levels are protected. “Till Rs 107 levels are held, there is high probability it can bounce till Rs 117 to Rs 120 range,” he said.
Thakkar noted that “a lot of shorts” had been built in several public sector banking names, and the recent move suggests some of those bearish positions are now being unwound.
Leadership shift within banking stocks
For much of the recent Nifty Bank recovery, private sector banks had done the heavy lifting. Thakkar pointed out that as Nifty Bank rebounded sharply from lower levels towards 58,500 and private lenders were the primary drivers of the move.
That trend, however, appears to have softened after the latest round of banking earnings.
“This week onwards, we have seen private sector banks reversing,” he said, adding that PSU banking stocks have relatively paused after their earlier form but are now beginning to outperform on a relative basis.
Why short-covering matters for PNB
Short-covering can often trigger swift upside moves, especially in liquid, sentiment-sensitive counters such as PSU banks. In PNB’s case, Thakkar said the stock is already showing signs of that shift, calling it “one of the stocks which is outperforming as of now in past one week to 10 days.”
For traders, that makes the Rs 107 mark a crucial line in the sand. Holding above that level could keep momentum intact and open room for a move back toward the Rs 117-120 band. A failure to hold support, however, would weaken the bullish setup.
Broader market context
The call comes at a time when the broader market remains cautious, with banking shares under pressure and investors closely tracking sector rotation. In that backdrop, PNB’s relative strength stands out. If PSU banks continue to attract buying interest while private lenders consolidate, public sector names such as PNB could remain on traders’ radar for near-term alpha.
Punjab National Bank (PNB) could be setting up for a near-term rebound as short-covering gathers pace in PSU banking stocks, according to ICICI Securities’ Jay Thakkar. The market expert said the state-run lender has emerged as one of the outperformers over the past week to 10 days, even as leadership within the banking pack appears to be shifting away from private lenders.
PNB’s near-term setup turns constructive
Responding to a viewer query on PNB bought at Rs 112, Thakkar, who is CMT, EPATian, Head Derivatives & Quant Research - Vice President at ICICI Securities, said the stock remains technically well-placed as long as key support levels are protected. “Till Rs 107 levels are held, there is high probability it can bounce till Rs 117 to Rs 120 range,” he said.
Thakkar noted that “a lot of shorts” had been built in several public sector banking names, and the recent move suggests some of those bearish positions are now being unwound.
Leadership shift within banking stocks
For much of the recent Nifty Bank recovery, private sector banks had done the heavy lifting. Thakkar pointed out that as Nifty Bank rebounded sharply from lower levels towards 58,500 and private lenders were the primary drivers of the move.
That trend, however, appears to have softened after the latest round of banking earnings.
“This week onwards, we have seen private sector banks reversing,” he said, adding that PSU banking stocks have relatively paused after their earlier form but are now beginning to outperform on a relative basis.
Why short-covering matters for PNB
Short-covering can often trigger swift upside moves, especially in liquid, sentiment-sensitive counters such as PSU banks. In PNB’s case, Thakkar said the stock is already showing signs of that shift, calling it “one of the stocks which is outperforming as of now in past one week to 10 days.”
For traders, that makes the Rs 107 mark a crucial line in the sand. Holding above that level could keep momentum intact and open room for a move back toward the Rs 117-120 band. A failure to hold support, however, would weaken the bullish setup.
Broader market context
The call comes at a time when the broader market remains cautious, with banking shares under pressure and investors closely tracking sector rotation. In that backdrop, PNB’s relative strength stands out. If PSU banks continue to attract buying interest while private lenders consolidate, public sector names such as PNB could remain on traders’ radar for near-term alpha.