The short-term outlook is negative for Power Finance Corporation (PFC). A conclusive close below ₹364 will change the medium-term outlook to negative as well. Crucial support is at ₹314, and resistance is at ₹397. A close above ₹404 will change the short-term outlook to positive. Though the outlook is negative, we expect some pullback.
F&O pointers: PFC contracts witnessed strong rollovers to December month. The December contacts also added steady accumulation of open interests along with a fall in share price, indicating built up of short positions. December future contracts closed at ₹367.85 against the November value of ₹369.25 and spot price ₹369.70. Option trading indicates that the stock could move in the ₹360-₹380 range.
Strategy: Traders can buy 375-December call that closed with a premium of ₹7.40. As the market lot is 1,300 shares, this would cost traders ₹9,620 which would be the maximum loss one can suffer if the price fails to sustain above ₹375. The breakeven point is ₹382.40. We expect there could be short covering that could lift the stock higher. Hold the position for at least two weeks. Keep the stop-loss at ₹3.50 initially and shift it to ₹6.5 if PFC opens on a positive note. However, if PFC slides sharply below ₹364, then stay away from this strategy.
Follow-up: Stop-loss would have been triggered on Lodha, as the stock failed to sustain initial momentum.
Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading.
Published on November 22, 2025
