Investors with short-term perspective can consider buying the stock of L&T Finance Holdings. It is apparent from the charts of the stock that following a medium-term downtrend from its lifetime high marked at Rs 97 in mid-December 2012, it found support around Rs 70 in late March. The stock subsequently changed trend triggered by positive divergence in daily moving average convergence divergence indicator.
Since early April, the stock has been on a modest uptrend. After a minor correction, the stock resumed its uptrend, taking support at around Rs 76 in the previous week. On Wednesday, the stock gained 3 per cent accompanied by extraordinary volume, breaching its 21- and 50-day moving averages. We notice that there is an increase in daily volume in the past two trading sessions. Both the daily and weekly price rate of change indicators are featuring in the positive area indicating buying interest.
We are bullish on the stock from a short-term perspective. We anticipate its up move to continue and knock our price target of Rs 83.5 or Rs 85.5 in the ensuing trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 78.7 level.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Keywords: L&T Finance Holdings stock