When a stock breaks out - it's likely to get support on pullback. Power Finance Corporation seems to have done all the right things and is now getting the desired support at key moving average level.
Here's the Weekly Chart
Power Finance Corporation broke out above 220 on weekly chart in May 2014 and since then has done well to get support at 200 dma on pullback. Here's the daily chart
As you can see in the chart above - stock found support at 200 dma in October 2014 at 220. The stock is once again at 200 dma and today once again - it bounced from there. One can now safely hope of sustained bounce from here on with closing stop loss below 271.
The good news: rally is in motion. Here's Jubilant Foodworks Chart
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers