Power Finance Corporation

We recommend a buy in Power Finance Corporation at current market price. From the weekly chart of Power Finance Corporation it is evident that it has been on a firm long-term uptrend from its April 2007 low of Rs 101. However, after marking a life-high at Rs 297 in mid of November 2007, the stock began to consolidate sideways in the range of Rs 240 and 280, which is above the long-term up trend-line. Recently, the stock found support from the long-term up trendline at arou nd Rs 240 and bounced up. The stock’s recent upmove has breached both the 21-day as well as 50-day moving average line. The weekly momentum indicator is featuring in the bullish region and the daily momentum indicator is rising upwards too. The immediate support for the stock is at Rs 240 and the next support is at Rs 220. Moreover, the long-term uptrend is still in place. The short-term investors can buy the stock while keeping the stop-loss at Rs 252 level. We expect the stock to rally to the immediate resistance level of Rs 300 level in the short-term.

Via BL