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L&T Finance Holding Technical Analysis #17: Sell | Target Rs 118 | Arijit Banerjee

OUR RECOMMENDATION

CMP#141.5
IdeaSELL
Sell Range145 – 140
Target118 – 113
StopLoss*150
Duration45 – 50 Trading Sessions
Potential Return^17 – 20%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
141.5SELL145 – 140118 – 11315045 – 50 Trading Sessions17 – 20%

# CMP on Jan 11, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 130.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

L&T Finance Holdings Ltd is a nonbanking financial institution offering a diverse range of financial products and services across corporate, retail and infrastructure finance sectors, investment management services etc. Headquartered in Mumbai, the company has diverse clients which include individual retails, large companies, banks, SME etc. L&T Finance Holdings reported a consolidated net profit of Rs 560.41 crore for the quarter ended September 30, 2018, compared to Rs 337.53 crore reported during the corresponding period of 2017-18.

Stock Data
NSE CodeL&TFH
Sectoral IndexNifty Financial
52W High189.5
52W Low110.65
Face Value10
Relative Performance_L&T Finance Holding vs Nifty Financial Services

TECHNICAL OBSERVATIONS (WEEKLY)

  • The share price witnessed a strong rally during 2016-2017, rallying from ₹ 50 to lifetime high of ₹ 213.85 in October 2017.
  • After the lifetime high, the stock had been moving in the lower top and lower bottom formation indicating negative bias.
  • Overall trend and the broader pattern are bearish and any reactive pullback might be temporary in nature.
L&T Finance Weekly Chart
L&T Finance Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • The stock price has slipped into sharp decline during this week and breakout below the trend line indicates a negative sign.
  • The price closed below 10 and 5 days Moving average crossover which considered bearish and helps to propel further downside movement.
L&T Finance Daily Chart
L&T Finance Daily Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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