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Power Finance Power Finance Corporation, as its very name suggests, is a company engaged mainly in the...
Power Finance Power Finance Corporation, as its very name suggests, is a company engaged mainly in the activity of financing major power generation projects and also expansion of the old ones. Popularly referred to as PFC by its short form, the company is sponsored by the government of India and doing well in its financial performance. The stock of this company had scaled to an all-time new high of Rs 383 in 2010 and thereby surpassed its peak achieved during the 2007-08 boom. This meant that the company could swell in the stock markets solely on its individual merits.However, the share after reaching a new peak of Rs 383 met with the same fate that all the stocks that go up. It entered a severe correction phase that forced it to go down upto a low of Rs 130.20 in August 2011, a level that turned out to be a strong support for the scrip as it did not go below that point and instead solicited buying support that resulted in formation of successive higher bottoms as shown in its weekly chart.Prior to the last week's low of Rs 170.55, the share had formed a support level at Rs 170.10 and thus a double bottom pattern has been formed which has helped it rally upto a high of Rs 185 before closing at Rs 179.15 last week, a sign that could make the share go further up provided no more negative factors emerge. The share is suggested for buying for medium to long term investing. Everest Kanto Everest Kanto had scaled to an all-time high of Rs 383.35 when the stock markets were passing through an unprecedented boom in 2007-08. However, like all the unprecedented bull markets, the fire in the Indian stock markets also met with an abrupt end and the next phase that emerged was a devastating bear market which sent the share down to Rs 84. The share then rallied upto a next peak of Rs 238.10 only to be met with increased selling pressure and the resultant downtrend that may have ended in most other scrip but for Everest Kanto, it was still at work as the share continued to drift gradually down until the last week when it reached low of Rs 17.30 before closing at Rs 17.90, a level it never saw before. When most other shares have come out of the post-bull market phase long ago, this particular scrip has been passing through a sustained bearish phase for which it could have specific reason, but the same appears to have been already more than discounted in its sustained and whopping descent and therefore, a speculative buy decision can be taken for this issue as the reward would be much higher than the risk so taken.
24 Oct 2019 1:14 AM GMT