The stock hit a fresh 52-week high of Rs 161.90 on 9 January 2023. It witnessed some profit-taking on 10 January, but experts are of the view that the long-term trend is intact.
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Power Finance Corporation (PFC), part of the financial institution industry, has rallied by about 50% in the last 3 months which helped the stock to hit a fresh 52-week high in January 2023 and also from a 12-year symmetrical triangular pattern on quarterly charts.
The stock hit a fresh 52-week high of Rs 161.90 on 9 January 2023. It witnessed some profit-taking on 10 January, but experts are of the view that the long-term trend is intact.
Medium-term traders can look to buy the stock now or on dips towards Rs 150 for a possible target above Rs 200 in the next 1-2 quarters, suggest experts.
The stock broke out from a 12-year symmetrical triangular pattern at Rs 154 levels with a positive technical indicator stochastic which is a positive sign for the bulls.
Tracking the momentum, the stock rose more than 3% in a week and more than 9% in a month.
On the price front, the stock is trading below the 5-DMA but above most of the other short and long term moving averages such as 10,30,50,100, and 200-DMA on the daily charts which is a positive sign for the bulls.
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“PFC on quarterly charts has broken out of its 12-year symmetrical triangular pattern at 154 levels with positive technical indicator stochastic,” Sujit Deodhar, Head - Technical Analyst, Wellworth Share and Stock Broking, said.
Post a rally in 2009-2010 from the levels of Rs 42.70-192.50, this stock went into a 12-year consolidation phase by forming a symmetrical triangle pattern (where the highs are lower and lows are higher).
“A strong bullish bar in the previous quarter followed by a breakout in the current quarter makes this stock an attractive buy,” he said.
On daily charts, PFC is comfortably trading above all its short-term as well as long-term moving averages (10, 20 short averages and 100 and 200 long-term averages) which shows the underlying strength.
“After such a strong move, one should buy this stock at current levels of Rs 156 and on any dips towards 140 levels for a decent upside target projected at Rs 225 levels with a holding period of 1-2 quarters and a protective stop loss placed below Rs 130 levels on a daily close basis,” recommends Deodhar.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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