Bounce Back Stocks Of The Day: Varun Beverages and Punjab National Bank

Varun Beverages and Punjab National Bank are identified as upside potential stocks based on technical analysis. Both stocks have displayed promising technical patterns, including price volume support and the potential to bounce back. Currently trading at Rs 1,394.45 and Rs 122.30 respectively, their price structures align with positive signals from technical indicators like RSI and ADX, suggesting momentum.

Varun Beverages Ltd 

Daily chart of Varun Beverages Ltd

Varun Beverages is currently displaying correction on the daily chart; the stock price trading with momentum with the indecision candle today. If the stock manages to hold the current level with the support of the good volume, the stock price may start the strong momentum upmove in the next coming trading sessions again. Today’s volume highlights active buyer participation with above-average daily volume today.

Thursday’s trading session began at Rs 1,390 and reached a peak of Rs 1,415 forming doji at the time of writing. After opening the stock has successfully surged towards the day high and dropped to the day low on the chart, indicating a potential support sign of the coming uptrend.

The current stock price is trading with a bullish green candle trying to close as a hammer pattern probably as a sign of strength, driven by increased volume during a particular trading session, indicating that investors are interested in up moves. In the coming time, the stock price may show momentum as it is bouncing from the 20-day EMA as well, it may set the stock up for a stronger positive trend shift, and the accumulated volume suggests further growth soon.

On the RSI chart, the relative strength index is trading in the neutral zone with gaining strength, and ADX trading at 36 indicates strong directional strength, favouring high momentum on either side. In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 1,200. The minor upper resistance is the 52-week high, and if the stock starts back-to-back closing above the 52-week high, then the stock may consistently trade above current levels.

Varun Beverages Ltd engages in the manufacture and sale of beverages.

Punjab National Bank

Daily chart Punjab National Bank Ltd

Punjab National Bank International’s current stock performance is characterised by a promising technical setup, trading at Rs 122.30 and has the potential to continue its strong long-term uptrend, accompanied by a significant increase in trading today. Currently, the stock price picking up after touching the support level.

Starting at Rs 120 on Thursday, the stock reached an intraday high of Rs 122. The current upsurge of the day was notable as the volume also picked up.

The stock has bounced and traded around the 20-day EMA, indicating buying activity. After reaching its all-time high the stock may witness a strong uptrend and the same is anticipated in coming trading sessions, following sustained levels above 120. The current market action is supported by a surge in volume on up days and dry volume on down days for the stock.

The relative strength index (RSI) recently traded in a bullish range at 55.07 suggesting the potential for a significant upward movement in the stock price as the RSI trades into the mild bullish region. The ADX (Daily), currently at 33, indicates strong directional strength. The level at Rs 107 serves as a crucial indicator for corrective movements after, and the overall market structure favours traders if the stock consistently trades above major moving averages.

Punjab National Bank operates as a commercial bank.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.