Top buzzing stock: L&T Finance Holdings Limited

The stock of L&TFH has surged over 6% in the initial hours of Wednesday’s trading session.

L&T Finance Holdings Limited is a non-banking financial institution-core investment company. With a market capitalization of nearly Rs 19000 crore, it is one of the strong growing company in its sector. The stock is in limelight for its recent run-up.

The stock of L&TFH has surged over 6% in the initial hours of Wednesday’s trading session. It has shown extreme bullishness in recent times as it gained nearly 25% since its recent swing low of Rs 64.10. The stock has risen for the fifth continuous trading session and shown strong upside momentum. Moreover, the stock has recorded huge volumes lately and are found to be greater than 10-day, 30-day and 50-day average volume. With today’s strong price action, it has crossed above its prior swing high of Rs 77.75. Thus, the price structure is extremely bullish.

Along with its strong price structure, several technical parameters are in line with the stock’s bullishness. The 14-period daily RSI has risen over 67 and indicates strong strength in the stock. With 14-period RSI and price both rising, it is a sign of bullishness. Moreover, the MACD histogram is above the prior high and indicates a strong uptrend. Interestingly, the On Balance Volume (OBV) has hit a peak and signals strong strength from the volume’s perspective.

The stock has generated returns of about 3% on a YTD basis and 14% in one month, thus outperforming the broader market and most of its peers during this period. Considering the above points, the stock is in a strong bullish move and shows no sign of halting. With this, it is expected to test the levels of Rs 84 which happens to be its prior swing high and 200-DMA. Thus, this level shall act as strong resistance. If this level is taken out, we can expect the stock to rally further. Thus, the stock has huge potential to deliver good returns in upcoming days.

Swing traders/positional traders can expect the stock to provide decent gains in a short period.