Technical view: PB Fintech Ltd

The stock of PB Fintech, also known as POLICYBZR, has skyrocketed over a massive 10% in Friday’s trading session.

POLICYBZR, after taking support of Rs 550 twice in the last four trading sessions has gained strong buying interest at this level and has bounced back sharply. However, the stock is in a strong downtrend since its debut on the exchange. Since its listing, the stock has lost over 48% of its value in just seven months. With this, it had hit its all-time low recently at Rs 540.10. However, strong buying seen lately has propelled the stock higher.

The 14-period daily RSI (38.09) has jumped from its oversold territory and shown good strength in the stock. The MACD line and the signal line are converging and might indicate a bullish crossover. The On Balance Volume (OBV) is above the prior swing high and indicates good strength from the volume’s perspective. However, the strong downtrend is quite justified by its moving averages as the stock lies about 12% below its 20-DMA and 30% below its 50-DMA. Moreover, KST and TSI indicators have a bearish view.

The growth stocks have been hammered across the global front. Higher inflation rates have hindered growth projections and the stocks have taken a beating. Whether today’s price action is a start of an uptrend or just a technical pullback is a sure thing to watch. A rise above its 20-DMA level of Rs 671 can see a positive upmove towards the level of Rs 800 and beyond. The volume recorded lately has been above average which indicates an optimism regarding an upmove. Traders should track the stock and keep a watch over the above-mentioned levels. It can produce good results in the short term as per the technical analysis.

PB Fintech Limited provides an online platform for insurance and lending products by leveraging the power of technology, data and innovation.