PFC

We recommend a buy in Power Finance Corporation from a short-term trading perspective. It is evident from the charts of this stock that it has been on an intermediate-term uptrend from its October low of Rs 86. This was also a 52-week low. Since then, the stock has been shaping higher peaks and higher troughs. On January 20, the stock resumed its intermediate-term uptrend from the twin support around Rs 130 (200-day moving average and up-trend line). The stock gained 3.5 per cent, accompanied with above average volume on that session. The daily relative strength index (RSI) is on the brink of re-entering the bullish zone from the neutral region and weekly RSI is steadily raising towards the bullish zone. Taking into account that the intermediate-term up-trend line continues to be intact, we are positive on the stock from a short-term perspective. We expect it to rally until it hits our price target of Rs 149. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 128.

via BL