We recommend a buy in the stock of Power Finance Corporation from a short-term perspective. It is evident from the charts of the stock that it has been in an intermediate-term uptrend since taking support from its key base zone between Rs 135 and Rs 140 in May 2012. It is hovering well above its 50- and 200-day moving averages. The stock decisively breached its short-term resistance level at Rs 210 by gaining 3.5 per cent with above average volume on February 4. We notice that there is an increase in daily volume in the past five trading sessions. The daily as well as weekly relative strength indices are featuring in the bullish zone. The price rate of change indicator is hovering in the positive territory. We expect its rally to continue and reach our price target of Rs 231 or Rs 236 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 218 .
Power Finance Corporation (Rs 222.5): BUY
February 10, 2013: