The stock of L&T Finance Holdings tumbled 5 per cent with above average volume on Wednesday, decisively closing below a key support level of ₹63. This fall provides, traders with a short-term perspective can opportunity to sell the stock at current levels. Following a short-term uptrend from the May low of ₹50, the stock encountered a key resistance at ₹72 in late June. This resistance limited the upside in the past week. The stock started to decline, triggered by negative divergence on the daily price rate of change indicator. The stock is currently on a near-term down-move. It has breached the 21- and 50-day moving averages recently and hovers well below them. The daily relative strength index has entered the bearish zone from the neutral region and the weekly RSI is on the brink of entering the bearish zone from the neutral region. Further, the daily price rate of change indicator features in the negative terrain implies selling interest. The short-term outlook is bearish. The stock can continue to trend downwards and reach the price targets of ₹58.5 and ₹57 in the upcoming trading sessions. Traders can sell the stock with a stop-loss at ₹62.5. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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