Technical Analysis

L&T Finance Holdings (₹109.7): Sell

Yoganand D BL Research Bureau | Updated on June 19, 2019 Published on June 20, 2019

The stock of L&T Finance Holdings plummeted 6.3 per cent accompanied with above average volume on Wednesday, breaking below a key medium-term support at ₹115. The fall gives investors with a short-term perspective an opportunity to sell the stock at current levels.

Since encountering a significant resistance at ₹185 in August 2018, the sock has been in an intermediate-term downtrend. Also, the stock has been in a medium-term downtrend from this April high of ₹155.

The daily and weekly relative strength indices feature in the bearish zone backing the downtrend. Moreover, the daily as well as weekly price rate of change indicator hovers in the negative territory implying selling interest.

The stock trades well below the 50- and 200-day moving averages. The short-term outlook for L&T Finance Holdings is bearish. The stock can continue to trend down and reach the price targets of ₹105 and ₹103 in the upcoming trading sessions. Sell the stock with a stop-loss at ₹112.

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

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