Technical Analysis - 14-Oct-2021 L&TFH

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Hello everyone, 

This section of my blog is "Technical Analysis" of Stocks in the Indian Stock market ecosystem which includes cash, futures, and options analysis based on my view and experience towards the market.

I will cover the following areas for each stock 

  1. Candlestick & Delivery Volume Analysis
  2. Future Open Interest
  3. Option Open Interest
  4. Technical Analysis using Ichimoku system
  5. Overall
  6. Stop Loss & Risk Reward Ratio

Let's start...!

Out First Pick is L&T Finance Holdings.

L&T Finance Holdings (LTFH) is a leading, well-diversified Non-Banking Financial Company (NBFC) with a focused range of financial products and services across rural, housing, and infrastructure finance along with mutual funds.

Let's look at the chart from the Tradingview below



1. Candlestick & Delivery Volume Analysis:
                The candlestick pattern for the past 2 two days shows higher high and higher low. The recent candlestick is a regular-sized candle with normal shadows on either side. 
                
                The percentage of delivery volume in terms of traded quantity is 31.9% as per the NSE website.      
Also, as per the charts, the volume is above the average volume for the past 10 days and volume is increasing which shows positive momentum in the delivery.

2. Future OI:
                The increase in open interest is 6.59%

3. Option OI:
                As per the Option open interest, the next resistance for the stock will be at Rs. 100. If it breaks and sustains above 100 level we can expect further momentum in the stock

4. Technical Analysis:
                As per the Ichimoku indicator, the price above the cloud and all the components are also showing positive bias as follows
  • Tenken Sen - Points upwards and closer to the price
  • Kijun Sen - Points upwards and close to the price
  • Senkou Span A - Points upwards and cloud is green
  • Senkou Span B - Points upwards and cloud is green
  • Chikou Span - Free in open space and don't have any immediate resistance on its way
The stock was facing resistance with 200 MA for 7 trading days and now it broke the resistance level and sustains above the moving average. RSI is at 68 and pointing upwards which shows bullish momentum. However since it has not crossed the level of 70, we can wait for the RSI to cross 70.

5. Overall:
                Overall the stock is showing more positive clues than negative. 

6. SL & RR:
                Stoploss for the stock can be at 91.6 and Target can at 100. The RR will be 1:2.11

Thanks to Tradingview, NSE India.