Key Events This Week
05 Jan: Mixed technical signals amid price momentum shift
08 Jan: Intraday low hit amid price pressure
09 Jan: Week closes at Rs.359.05 (-4.48%)
05 January 2026: Mixed Technical Signals Amid Early Price Momentum
Power Finance Corporation Ltd began the week with a modest decline, closing at Rs.374.80, down 0.29% from the previous close. This came alongside a 0.18% drop in the Sensex, signalling a cautious start to the week. Despite this, the stock had shown a short-term rally in the days prior, with MarketsMOJO upgrading its technical outlook to a Sell rating on 06 November 2025, reflecting a complex blend of bearish and mildly bullish indicators.
On 05 January, PFC’s price momentum was characterised by mixed signals. The stock traded within a range of Rs.363.40 to Rs.378.90, showing intraday strength but remaining below its 52-week high of Rs.474.70. Technical oscillators such as the MACD and Bollinger Bands suggested weakening momentum, while volume indicators like On-Balance Volume (OBV) showed mild buying support. The stock’s short-term gains had outpaced the Sensex in recent weeks, but medium- and long-term indicators remained cautious.
06 and 07 January 2026: Modest Gains Amid Market Volatility
On 06 January, PFC rebounded slightly, gaining 0.35% to close at Rs.376.10, despite the Sensex falling 0.19%. The following day, 07 January, the stock added another 0.23%, closing at Rs.376.95, marginally outperforming the Sensex’s 0.03% gain. These two sessions reflected a brief continuation of the stock’s short-term positive momentum, supported by relatively low volumes of 260,217 and 122,472 shares respectively.
However, the stock remained below key moving averages such as the 5-day, 50-day, 100-day, and 200-day, indicating resistance levels that limited further upside. The technical indicators continued to send mixed messages, with the Relative Strength Index (RSI) hovering in a neutral zone and the Know Sure Thing (KST) oscillator mildly bearish on monthly charts.
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08 January 2026: Intraday Low Amid Price Pressure and Market Weakness
The stock’s momentum reversed sharply on 08 January, with PFC closing at Rs.365.40, down 3.06% on the day. It touched an intraday low of Rs.364.65, a 3.26% drop from the previous close, underperforming the Sensex’s 1.41% decline. This marked a significant shift in investor sentiment after two days of modest gains.
Technical analysis showed the stock trading above its 20-day moving average but below its 5-day, 50-day, 100-day, and 200-day averages, signalling resistance and a broader downward trend. The broader market also weakened, with the Sensex falling 532.30 points to 37,137.33, reflecting a challenging environment for equities.
This decline was attributed to immediate selling pressures and profit-taking after recent gains. The stock’s inability to sustain momentum amid these pressures highlighted the fragility of its short-term rally.
09 January 2026: Week Closes Lower Amid Continued Selling
On the final trading day of the week, PFC declined further by 1.74%, closing at Rs.359.05. This extended the week’s losses and outpaced the Sensex’s 0.89% drop. The volume of 214,972 shares indicated moderate trading activity as investors remained cautious.
The stock’s weekly performance, down 4.48%, contrasted with the Sensex’s 2.62% fall, indicating relative underperformance. Despite a solid dividend yield of 3.8%, the stock faced technical headwinds and broader market weakness that weighed on price action.
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Daily Price Comparison: Power Finance Corporation Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-05 | Rs.374.80 | -0.29% | 37,730.95 | -0.18% |
| 2026-01-06 | Rs.376.10 | +0.35% | 37,657.70 | -0.19% |
| 2026-01-07 | Rs.376.95 | +0.23% | 37,669.63 | +0.03% |
| 2026-01-08 | Rs.365.40 | -3.06% | 37,137.33 | -1.41% |
| 2026-01-09 | Rs.359.05 | -1.74% | 36,807.62 | -0.89% |
Key Takeaways
Mixed Technical Signals: The week began with a complex technical outlook, featuring a short-term rally but bearish medium- and long-term indicators. The stock’s MACD, Bollinger Bands, and KST oscillators suggested weakening momentum, while volume indicators showed mild support.
Intraday Price Pressure: The sharp decline on 08 January, including an intraday low of Rs.364.65, marked a clear reversal of recent gains. This was driven by broader market weakness and resistance at key moving averages, signalling caution among traders.
Relative Underperformance: PFC’s 4.48% weekly decline exceeded the Sensex’s 2.62% fall, highlighting the stock’s vulnerability amid market volatility. Despite a healthy dividend yield of 3.8%, the stock struggled to maintain momentum.
Conclusion
Power Finance Corporation Ltd’s week was characterised by a fragile short-term rally undermined by mixed technical signals and significant selling pressure. While the stock showed resilience early in the week, the intraday low and subsequent declines on 08 and 09 January underscored the challenges it faces amid a weakening broader market. The downgrade to a Sell rating by MarketsMOJO and the current Mojo Score of 44.0 reflect these concerns.
Investors should note the stock’s strong long-term performance relative to the Sensex but remain cautious given the recent technical deterioration and market environment. Monitoring key technical indicators and volume trends will be essential to assess whether PFC can stabilise or if further downside is likely in the near term.
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