Power Finance Corporation Ltd Faces Mixed Technical Signals Amid Mildly Bearish Momentum

Recent Price Movement and Market Context

As of 10 Feb 2026, PFC closed at ₹415.15, down 0.97% from the previous close of ₹419.20. The stock traded within a range of ₹405.30 to ₹430.75 during the day, remaining below its 52-week high of ₹443.95 but comfortably above the 52-week low of ₹330.05. This price action reflects a consolidation phase with mild downside pressure.

Over the past week and month, PFC has delivered robust returns of 7.66% and 15.62% respectively, significantly outperforming the Sensex’s 2.94% and 0.59% returns over the same periods. Year-to-date, the stock has gained 16.81%, while the benchmark index has declined by 1.36%. However, over the one-year horizon, PFC’s 1.39% return lags behind the Sensex’s 7.97%, indicating some recent deceleration in momentum.

Technical Trend Shift: From Sideways to Mildly Bearish

Technical analysis reveals a nuanced picture. The overall trend has shifted from a sideways pattern to a mildly bearish stance, primarily driven by daily moving averages and momentum oscillators. The daily moving averages have turned mildly bearish, signalling that short-term price averages are beginning to slope downward, which often precedes further price weakness.

Meanwhile, the weekly and monthly charts present a more mixed scenario. The Moving Average Convergence Divergence (MACD) indicator is mildly bullish on the weekly timeframe but mildly bearish on the monthly, suggesting short-term momentum is positive but longer-term momentum is weakening. This divergence often indicates a potential inflection point where the stock may face resistance to further gains.

Momentum Oscillators: RSI and KST Analysis

The Relative Strength Index (RSI) on the weekly chart has turned bearish, indicating that the stock is losing upward momentum and may be entering an oversold or weakening phase. Conversely, the monthly RSI shows no clear signal, reflecting indecision or a neutral momentum stance over the longer term.

The Know Sure Thing (KST) oscillator, which aggregates multiple rate-of-change indicators, is mildly bullish on the weekly timeframe but mildly bearish on the monthly. This further underscores the conflicting signals between short-term strength and longer-term caution.

Bollinger Bands and On-Balance Volume (OBV) Insights

Bollinger Bands on the weekly chart are mildly bullish, indicating that price volatility is contained and the stock is trading near the upper band, which can be a sign of strength. However, the monthly Bollinger Bands are mildly bearish, suggesting that over a longer horizon, price volatility may increase with a downward bias.

On-Balance Volume (OBV) analysis shows no clear trend on the weekly scale but a bullish trend on the monthly scale. This divergence implies that while short-term volume flow is indecisive, longer-term accumulation by investors remains intact, providing some support to the stock price.

Dow Theory and Market Sentiment

According to Dow Theory, both weekly and monthly charts are mildly bullish, signalling that the broader market sentiment towards PFC remains cautiously optimistic. This is an important counterbalance to the bearish signals from some momentum indicators, suggesting that the stock may find support at current levels.

Mojo Score and Rating Update

MarketsMOJO has downgraded Power Finance Corporation Ltd’s mojo grade from Hold to Sell as of 09 Feb 2026, reflecting the emerging technical weakness and the mixed momentum signals. The current mojo score stands at 47.0, which is below the neutral 50 mark, reinforcing the cautious stance. The market cap grade remains at 1, indicating a relatively modest market capitalisation compared to peers.

This downgrade signals that investors should be wary of potential downside risks in the near term, despite the stock’s strong historical returns and relative outperformance versus the Sensex over longer periods.

Long-Term Performance Context

Power Finance Corporation Ltd has delivered impressive long-term returns, with a 10-year gain of 504.82% compared to the Sensex’s 249.97%. Over five years, the stock has surged 311.69%, vastly outperforming the benchmark’s 63.78%. The three-year return of 256.90% versus the Sensex’s 38.25% further highlights the company’s strong growth trajectory.

However, the recent one-year return of 1.39% trailing the Sensex’s 7.97% suggests a deceleration in momentum, which aligns with the current technical signals indicating a mild bearish shift.

Investor Takeaway and Outlook

In summary, Power Finance Corporation Ltd is currently navigating a complex technical landscape. While short-term indicators such as weekly MACD, Bollinger Bands, and Dow Theory remain mildly bullish, the daily moving averages and weekly RSI suggest emerging bearish momentum. The monthly indicators lean towards caution, with mildly bearish MACD and Bollinger Bands, and a bearish KST.

Investors should weigh these mixed signals carefully. The stock’s strong long-term performance and monthly OBV bullishness indicate underlying strength, but the recent downgrade to a Sell mojo grade and the shift to a mildly bearish technical trend warrant prudence. Those holding the stock may consider tightening stop-loss levels or reducing exposure, while prospective buyers might await clearer confirmation of trend reversal before initiating positions.

Given the divergence between short-term bullishness and longer-term caution, monitoring upcoming price action and volume trends will be critical to assess whether PFC can sustain its momentum or if a deeper correction is imminent.

Summary of Key Technical Indicators:

• MACD: Weekly mildly bullish; Monthly mildly bearish
• RSI: Weekly bearish; Monthly neutral
• Bollinger Bands: Weekly mildly bullish; Monthly mildly bearish
• Moving Averages: Daily mildly bearish
• KST: Weekly mildly bullish; Monthly mildly bearish
• Dow Theory: Weekly and Monthly mildly bullish
• OBV: Weekly no trend; Monthly bullish

Overall, the technical parameter changes reflect a nuanced momentum shift that investors should analyse in conjunction with fundamental factors and broader market conditions.

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