Power Finance Corporation (₹87): Buy

Yoganand D Updated on September 07, 2018

Investors with a short-term perspective can buy the stock of Power Finance Corporation (PFC) at current levels. The stock picked up bullish momentum on Thursday and surged 4 per cent with an above average volume breaching a key resistance at ₹84. Moreover, the stock has decisively breached its 21-day moving average and hovers well above its 50-day moving average as well.

Since registering a 52-week low at ₹67.6 mid-July this year, the stock has been in a short-term uptrend backed with good volume. Within this uptrend, the stock has been moving sideways over the last three weeks, but with a positive bias.

The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI is charting higher in the neutral region. Both the daily and the weekly price rate of change indicators feature in the positive territory indicating buying interest.

Overall, the short-term outlook is bullish for the stock of PFC. It can continue to trend upwards and hit the price targets of ₹90.5 and ₹92.5 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹85.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on September 06, 2018
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