Sell PFC Ltd & Bank of India -Short term Sector Momentum Stock Pick 09 Dec - HDFC Sec

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Sell PFC Ltd

Current Observation:
 The PSU sector has declined sharply during today’s weak broader market and the Power Finance Corporation Ltd
(PFC Ltd) is one of the sector packs that have contributed today to the sector’s decline.
 After showing hesitation to move up in the last 3-5 sessions, the stock price declined sharply today and moved below
the key lower levels support of mid Bollinger band around Rs.297.00.
 This pattern opens up the possibility of the stock price declining further and tag the lower band in near term.
 The volume has expanded today during weakness in the stock price (volume not shown on the chart) and daily
momentum oscillator (RSI) has slipped below the key upper area of 60 indicating aggressive participation with rise in
downside momentum.
 Negative chart pattern and weak momentum is suggesting a fresh shorting opportunity in PFC Ltd for near term

Sell  Bank of India
Current Observation:
 The attached daily timeframe chart of this PSU banking stock seems to have completed an important top reversal
pattern.
 The stock price has declined sharply today after completing the bearish candlestick pattern of ‘shooting star’ near the
strong overhead resistance of around Rs.303 levels (green horizontal line). This could be considered as a top reversal
pattern for the stock price and one may expect continuation of weakness for some more time.
 The prices have closed today on the edge of moving below the immediate support around Rs.292 levels (brown up
sloping minor trend line). A further decline from here could confirm the abovementioned bearish candlestick pattern
and this could possibly convert into near term down trend.
 Daily momentum oscillator like 34 period stochastic has turned down from near the overbought region of 90 levels.
This indicates overbought nature of the stock price.
 Follow through decline from here could give an opportunity for a sell for near term.

LINK
http://www.hdfcsec.com/Share-Market-Research/Research-Details/StockReports/3010209