PFC and REC partially recover losses as regulatory worries subside

PFC and REC partially recover losses as regulatory worries subside

Traders explained the dramatic response in these equities by saying that their relentless rise has made them more susceptible to negative news.

According to a CLSA assessment, the effect on profit and loss for the firm would be negligible, potentially affecting primarily capital adequacy measures.

PFC and REC, the power finance twins, bounced back from their early lows as worries about the possible impact of the RBI's draft proposal on project financing provisions subsided. According to a CLSA assessment, the effect on profit and loss for the firm would be negligible, potentially affecting primarily capital adequacy measures.

Following intraday losses of 12% and 8% to settle at Rs 437.45 (-8.95 percent) and Rs 516.20 (-7.46 percent), respectively, PFC and REC stocks gained back ground.

Traders explained the dramatic response in these equities by saying that their relentless rise has made them more susceptible to negative news.

The important levels to be aware of are as follows:

The stock response, according to Sudeep Shah of SBI Securities, was greater than the announcement itself. The primary trend of these equities remained positive, trading above their weekly moving averages, thus he views today's action as a pullback inside the larger uptrend. He also pointed out that they are still showing higher bottoms and peaks, which suggests further upward momentum. Shah notes that REC and PFC have seen a clever comeback despite a steep decline in the opening part of the trading day. These stocks found support around the Rs 482-484 range, which is the intersection of the 13-day EMA level and the 50% Fibonacci retracement level of their last upward surge. He suggests taking a cautious approach moving ahead in light of the recent volatility and the need to carefully watch events.

Strong support zones for REC and PFC are identified by Milan Vaishnav, Founder of Gemstone Equity Research & Advisory Services, as being between Rs 460 and 475 and Rs 410 and 425, respectively. He anticipates a wide range of consolidation and stabilization for the equities, with little downside. He suggests that investors hang onto these equities and use any falls to make little purchases.

Technical expert Dinesh Nagpal highlights the significance of recent stock fluctuations. PFC thinks that, for the time being, keeping levels over 430 might provide strong support. Nonetheless, a double top formation might be indicated if levels between Rs 410 and Rs 415 are not maintained. assistance for REC is estimated to be about Rs 460, with Rs 510 acting as short-term assistance. Given the equities' recent strong bull run, Nagpal suggests caution, especially if crucial support levels fail to hold as this might imply dangerous double top formations.