Chart Check: Why L&T Finance Holding could rally 50% in next 1-2 quarters, Sujit Deodhar decodes

L&T Finance Holdings, part of the financial services space, has picked up momentum after retesting crucial support levels and most of the technical indicators also suggest an upside of about 50%, suggest experts.

The stock has rallied over 48% from its March low of Rs 58. It hit a 52-week high of Rs 92 on 22 April, 2022, but it failed to hold on to the momentum.

Short-term traders who missed the rally can look to buy the stock now or on dips for a possible target above Rs 100 in the next 1-2 quarters, suggest experts.


The stock rose more than 9% in a week and over 10% in a month. It has rallied more than 20% in the past 6 months.

In terms of price action, the stock is trading well above the short- and long-term moving averages of 5,10,30,50,100 and 200-DMA which is a positive sign for the bulls.

The Relative Strength Index (RSI) is at 69.2. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.

“L&TFH has seen an insider bar breakout at Rs 86.50 level on quarterly charts. It can be observed that the stock has been in the range of the height of the mother candle of March 2020 (Rs 42-124 levels) from the past nine quarters,” Sujit Deodhar, Head - Technical Analyst, Wellworth Share and Stock Broking Ltd., said.

“This stock has formed a base around Rs 48-58 levels which acts as a major support. The stock has been testing the falling trendline as seen on charts in the past five quarters making it a strong case for a ‘buy’,” he said.

Stochastic oscillator (which is a momentum indicator) exhibits a fresh buy signal on quarterly charts supporting the bullish stance.

“L&TFH qualifies for a buy at current levels of Rs 88.60 & on dips towards Rs 81-75 levels with stop loss to be placed below Rs 70 levels on daily close basis for a potential upside target projected at Rs 130 level with holding period of next 1-2 quarters,” recommends Deodhar.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)