L&T FINANCE HOLDINGS
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.