PFC stock eyes breakout, can gain up to 11%; Bajaj Broking explains why

Power Finance Corporation's share price is at the cusp of generating a breakout above the falling trendline joining the last 2 months' highs, says Bajaj Broking.

Power Finance Corporation (PFC) recently witnessed a 16 per cent price correction from its high of ₹468 in March 2026 to a low of ₹408 earlier this week. Since then, the stock has bounced back by 5 per cent in the following three days.  On Friday, PFC stock opened on a flat note at ₹424.50 levels, and soon jumped to an intra-day high of ₹435.70. At 9:20 AM, the stock traded with a gain of 1.9 per cent at ₹432, backed by volumes of around 4 lakh shares on the NSE. In comparison, the BSE Sensex and the NSE Nifty were up 0.2 per cent each at 74,500 and 23,460 levels...  Bajaj Broking in its report dated June 4 (Thursday) recommended PFC as a 'Positional Pick'. Here's why the brokerage firm believes the stock can rally up to 11 per cent in the next one month. 

Bajaj Broking bullish on PFC stock

Among the key reasons of Bajaj Broking being bullish on PFC, is that the analysts at the brokerage firm believe that the stock is on the verge of a crucial breakout on the daily charts. 

 

 

  "The stock is at the cusp of generating a breakout above the falling trendline joining the last 2 months highs thus offers fresh entry opportunity," explains Bajaj Broking with the above chart in its report.  Further, the analysts observe that buying demand has recently emerged from the key support area of ₹405-₹415 being confluence of the 200-Day Exponential Moving Average (DEAM) and the trendline support joining previous highs.  ALSO READ | Vodafone Idea hits ₹15, next target ₹20? Here's what analyst says  This they believe signals a likely change of polarity as the previous resistance has reversed its role and now acting as support.  Among the key momentum oscillators, the brokerage highlights that the daily stochastic has generated a 'Buy' signal moving above its three periods average, thus validating a positive bias on the stock.  Given the above positive indicators on the PFC chart, Bajaj Broking recommends buying the stock in the ₹418-₹428 range, with a stop loss placed at ₹398 for a likely target of ₹469.  The upside target implies a potential upside of nearly 11 per cent from yesterday's closing stock price, and represents the 80 per cent retracement of the entire previous decline form ₹486 to ₹408 levels, explains the brokerage firm. Analysts have recommended a holding period of up to 30 days for this trade.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.