Power Finance Corporation: Signs of a Recovery

Power Finance Corporation (PFC) is showing signs of a short-term recovery after a prolonged decline. The stock closed at ₹337.90, gaining 3.08% in the latest session. On the daily chart, the price has moved above the 10 EMA at ₹329.62 and the 20 EMA at ₹335.17, indicating improving short-term momentum. The RSI has recovered to 48, suggesting a gradual improvement in buying strength, while the MACD histogram has turned positive, hinting at a potential bullish crossover. However, the stock is still trading below the 50 EMA at ₹355.59, 100 SMA at ₹390.32 and 200 SMA at ₹399.37. The ADX at 44.31 indicates a strong prevailing trend, so confirmation of a sustained reversal is important. Key Levels: Immediate support lies around ₹328–330, followed by ₹315–320. Resistance is placed near ₹345–350, followed by the 50 EMA zone around ₹355–356. A sustained move above ₹356 could strengthen the recovery, while a break below ₹328 may weaken the current momentum. My View: PFC is showing early signs of a technical rebound, supported by improving momentum indicators. However, the broader trend remains weak until the stock reclaims its major moving averages. Existing investors may monitor the ₹328–330 support zone and price action near ₹350–356 for signs of continuation or renewed selling pressure. Disclosure: Disclosure: I or my family members do not hold any shares of PFC at the time of writing. This article is for educational purposes and reflects technical analysis, not personalized investment advice.