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Investors with a short-term perspective can buy the stock of L&T Finance Holdings at current levels.
On Wednesday, the stock jumped 5.5 per cent accompanied with extraordinary volume, breaching a key resistance at ₹136. Following a sharp fall in the month of September, the stock found support at around ₹115 in early as well as late October.
Triggered by a positive divergence, the stock changed direction and began to trend upwards. Since late October, the stock has been on a short-term uptrend. After testing the key barrier at ₹136 for more than two week, the stock eventually breached it. Moreover, the stock has surpassed its 21- and 50-day moving averages and trades well above them now. The daily price rate of change indicator feature in the positive territory implying buying interest. The daily relative strength index is on the brink of entering the bullish zone from the neutral region.
Overall, the short-term outlook is bullish. The stock can continue to trend upwards. Targets are ₹144.5 and ₹147. Traders with a short-term view can buy the stock with a stop-loss at ₹135.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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