Power Finance Corporation

Investors with short-term trading perspective can buy the stock of Power Finance Corporation. It is apparent from its charts that it has been on a long-term uptrend from its all-time low of Rs 86 in October 2008. Since then, the stock has been forming higher peaks and higher troughs. Finding support in the range between Rs 230 and Rs 235 in late February 2010, the stock resumed its upward journey. The medium-term trend is also up since February. The stock is trading way above the 21- and 50-day moving averages. The stock has gained almost five per cent in last two trading sessions, penetrating immediate resistance level of Rs 282. Daily moving average convergence and divergence indicator has signalled a buy and is featuring in the positive territory. Both daily and weekly relative strength indices which have entered into the bullish zone from the neutral region, reinforces the bullish momentum. We are bullish on the stock from a short-term perspective. We expect it to rally further until it hits our price target of Rs 310 in the coming trading sessions. Short-term traders can buy the stock with stop-loss at Rs 278.

via BL