Technical Analysis

L&T Finance Holdings (₹156): Sell

Yoganand D BL Research Bureau | Updated on September 17, 2018 Published on September 17, 2018

Investors with a short-term perspective can sell the stock of L&T Finance Holdings at current levels. The stock has been in an intermediate-term downtrend since hitting a resistance at ₹210 in October 2017. Significant resistance in the band between ₹183 and ₹188 has been consistently limiting the stock's upside since December. In August 2018, the stock tested this resistance and resumed its downtrend on the back of selling pressure.

The stock has been in a short-term downtrend over the last three weeks. While trending down, the stock decisively breached the key support at ₹170 as well as its 200-day moving average. The stock trades well below its 50- and 200-DMAs.

On Monday, the stock fell by 3 per cent with good volume, resuming the downtrend. The daily relative strength index is featuring in the bearish zone. The price rate of change is hovering in the negative territory implying selling interest. Overall, the short-term outlook is bearish for the stock. It can extend its fall and reach the price targets of ₹150 and ₹146.5 in the coming trading sessions. Sell the stock with a stop-loss at ₹159.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on September 17, 2018
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