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WiFi Direct with Power Saving Mechanism (PSM) is a promising technology in Smart Grid applications. This paper studies the outage performance of WiFi Direct networks over Rayleigh fading channels. Considering PSM, the traffic intensity and the number of devices in the WiFi Direct network that are connected with a specific WiFi Direct device are modeled as a Markov chain. By employing the distribution property of the power of Rayleigh fading channel, the closed-form outage probabilities of WiFi Direct networks with PSM are obtained for high Signal to Noise Ratio (SNR) case and low SNR case, respectively. Numerical results show the impact of traffic intensity as well as the total number of devices on the outage performance of WiFi Direct network.