Power Finance Corporation charged ahead with the broader market on Tuesday. Buy the stock with a short-term trading perspective. After registering a 52-week low at Rs 97.4 in early August, the stock reversed its trend. Since then, it has been on a medium-term uptrend. However, on its way higher, the stock encountered a key resistance at Rs 140 that made it reverse lower.

The presence of a significant support at Rs 120 cushioned this decline. After forming a bullish engulfing candlestick pattern, the stock rebounded from this support level with a 5 per cent gain on Tuesday. The indicators in the daily chart are plotting a reversal from the negative territory. Medium-term trend is still upward.

The near-term outlook is bullish for the stock. It can trend higher to Rs 134 or Rs 137 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at Rs 125.7 level.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

(This article was published on October 29, 2013)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.