L&T FI­NANCE HOLD­INGS

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I’m hold­ing 350 shares of L&T Fi­nance Hold­ings at an av­er­age price of Rs 155 at the cur­rent lev­els. I’m suf­fer­ing a huge loss. Should I av­er­age by buy­ing at the cur­rent lev­els?

- Su­man Kumar Singh

AVOID L&T FI­NANCE HOLD­INGS FOR NOW

L&T Fi­nance Hold­ings is cur­rently trad­ing at Rs 126.20. Its 52-week high/low stand at Rs 213.85/Rs 120.50 made on Oc­to­ber 24, 2017 and Septem­ber 25, 2018, re­spec­tively. The stock had wit­nessed a trend­line break­out at the lev­els of Rs 174-178 around last week of July, and there­after, the stock moved higher up to the lev­els of Rs 189-189.50. How­ever, the stock faced re­sis­tance around the lev­els of Rs 189-189.50. Af­ter fac­ing re­sis­tance around the men­tioned level, the stock moved lower and breached its 50-pe­riod weekly mov­ing av­er­age and en­tered into a sharp de­cline, and in no time, the stock breached its dou­ble bot­tom pat­tern, which was placed at Rs 140-145 and the sell­ing pres­sure in­ten­si­fied. At the cur­rent junc­ture, it is not ad­vis­able to av­er­age this stock even though the os­cil­la­tors on the daily as well as weekly time frame are in the over­sold re­gion, yet there is no re­ver­sal in sight. Hence, avoid av­er­ag­ing this stock at the cur­rent lev­els as per tech­ni­cal per­spec­tive.

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