Contact Us | Log In
Search
Sensex: 33844.9 +141.30 Gold: Rs.30456.00
Nifty: 10397.5 +37.10 Silver: Rs.38195.00
Technical Stock Pick: Sell Power Finance Corporation between CMP & Rs.119.50 - IndiaNotes.com
Technical Stock Pick: Sell Power Finance Corporation between CMP & Rs.119.50
HDFC Sec | Published: 05 Feb, 2018  | Source : IndiaNotes.com

Technical Stock Pick: Power Finance Corporation


Observation:


- The PSU stock (Power Finance Corporation Ltd) as per weekly timeframe has slipped into sharp weakness during this week and closed the week lower by around 6.57%, as per w-o-w basis


- We observe larger sideways range movement over the last few months and the attempt to show upside breakout from the range was not sustained.


- This pattern is indicating a weak upside strength in the stock price and currently the stock price has placed at the edge of breaking below the key support of Rs.112 levels (brown dashed horizontal line)


- Weekly 13 period -DMI has widened and made pivot high at 28 levels and the weekly 13 period ADX has turned up from near the key lows of around 11-12 levels. Both the indications are signaling that the downside momentum in the stock price could strengthen and one may expect sharp downside breakout soon


- Volume rose in last week during decline in stock price and further weakness below the support could possibly lead to further expansion in volume in coming weeks


- The overall negative chart set up is indicating a sell trade opportunity in PFC. One may look to sell this stock as per the levels mentioned above


Recommendation:
HDFC Securities recommends investors to sell Power Finance Corporation between CMP & Rs.119.50 for targets of Rs 98/86 with a stop loss placed at Rs122.50 in 1-2 months.

 

  Read full report Click here to read the full report


About HDFC Sec

HDFC Securities a trusted financial service provider promoted by HDFC Bank and JP Morgan Partners and their associates, is a leading stock broking company in the country, serving a diverse customer base of institutional and retail investors. HDFCsec.com provides investors a robust platform to trade in Equities in NSE and BSE , and derivatives in NSE. Our website will support you with the highest standards of service, convenience and hassle-free trading tools.


For more information please write in to editor@indianotes.com


Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.