The outlook for the stock of L&T Finance Holdings (₹102) is bullish. The stock is set for a major rally. If the current trend sustains, the stock is expected to touch ₹170. However, the stock could face a minor resistance at around ₹125 while trending up.

The long-term positive outlook will change bearish only on a close below ₹74.6. Immediate support is at ₹92.2 and the crucial one is at ₹86.4.

F&O pointers: L&T Finance Holdings futures witnessed a healthy roll over of 15 per cent to November series. Trading in options indicates that it could receive support at ₹100. Heavy build-up in call options indicates the stock could move in a range up to ₹110.

Strategy: Traders with high-risk appetite can consider going long on L&T Finance Holdings futures and roll over the position for at least three months. Stop-loss can be placed at ₹86 initially, for a target of ₹170. The stop-loss can be shifted to ₹92 and then to ₹102 if the stock sustains the current bull momentum. This strategy is for investors who can withstand huge swings that will require high margin commitments. If the stock manages to reach ₹125, the stop-loss can permanently be placed at ₹125.

Follow-up: Hold Tata Power option positions.

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