{"id":11853,"date":"2023-02-02T09:52:45","date_gmt":"2023-02-02T04:22:45","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=11853"},"modified":"2023-02-02T09:52:47","modified_gmt":"2023-02-02T04:22:47","slug":"is-lt-finance-a-smart-pick-for-positional-trading","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/is-lt-finance-a-smart-pick-for-positional-trading\/","title":{"rendered":"Is L&#038;T Finance a Smart Pick for Positional Trading?"},"content":{"rendered":"\n<p>Markets surprised most traders with a massive decline. The decline coincided with two consecutive expiries, T+1 settlement regime implementation and Adani chaos. While global markets remain resilient and continue to uptick, only Indian markets declined massively due to domestic events. Nonetheless, the mid to long-term trend remains intact, and we continue with a stock-specific approach. This week, I select <a href=\"https:\/\/www.tickertape.in\/stocks\/landt-finance-holdings-LTFH?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\">L&amp;T Finance<\/a> as the counter, as it seems to bottom out and can be considered during this brutal (no trend) correction.&nbsp;<\/p>\n\n\n\n<p class=\"sc-embed\" data-width=\"500px\" data-orders=\"%5B%7B%22quantity%22%3A10%2C%22ticker%22%3A%22L%26TFH%22%7D%5D\" data-cardsize=\"big\" data-withtt=\"true\" data-withsearch=\"true\" style=\"width:500px;min-height:300px;display:flex;align-items:center;justify-content:center\"> <strong>loading widget to trade L&amp;TFH<\/strong> <\/p> <script async=\"\" src=\"https:\/\/www.gateway-tt.in\/assets\/embed.js\"><\/script>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/is-lt-finance-a-smart-pick-for-positional-trading\/#Monthly-Cycle\" title=\"Monthly: Cycle\">Monthly: Cycle<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/is-lt-finance-a-smart-pick-for-positional-trading\/#Weekly-Price-action\" title=\"Weekly: Price action\">Weekly: Price action<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/is-lt-finance-a-smart-pick-for-positional-trading\/#Weekly-Relative-Strength-Indicator-RSI\" title=\"Weekly: Relative Strength Indicator (RSI)\">Weekly: Relative Strength Indicator (RSI)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/is-lt-finance-a-smart-pick-for-positional-trading\/#Weekly-MACD\" title=\"Weekly: MACD\">Weekly: MACD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/is-lt-finance-a-smart-pick-for-positional-trading\/#Weekly-Ichimoku\" title=\"Weekly: Ichimoku\">Weekly: Ichimoku<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/is-lt-finance-a-smart-pick-for-positional-trading\/#Weekly-Supertrend\" title=\"Weekly: Supertrend\">Weekly: Supertrend<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/is-lt-finance-a-smart-pick-for-positional-trading\/#Ratio-chart-L-T-Finance-Vs-Chola-Finance\" title=\"Ratio chart: L&amp;T Finance Vs Chola Finance\">Ratio chart: L&amp;T Finance Vs Chola Finance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/is-lt-finance-a-smart-pick-for-positional-trading\/#Putting-it-all-together\" title=\"Putting it all together\">Putting it all together<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Monthly-Cycle\"><\/span><strong>Monthly: Cycle<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh5.googleusercontent.com\/sEYkfPs2mIts0fcryJC62Gc7L1jFNtmfpYqElboKHiDbe4s_KsflZ5ZY56GfRzdxdIYm1_lbutSKYXrybIse1mPN4m-5O0V0UkePGWNvejua8gJeFX_IpXlpGwO4etmFhiFAzQm0hRHu_XswumnSWQ\" width=\"643\" height=\"305\"><\/p>\n\n\n\n<p>For almost a decade, the counter followed 30 months cycle to change the megatrend. The most recent behaviour of the counter was sideways for 30 months, which ended in September 2022. Uptick seems in progress.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-Price-action\"><\/span><strong>Weekly: Price action<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh6.googleusercontent.com\/zMbHGYEeP7J28spdAkQOWic8i0lcSt622SUn_V-lU9muSlH81-aufLMi73PB7h-nj8vEjg2mqpC82NewJFiVyVxlz2maHiPU4IdGSSwKO8VXroSCaQL3zXccvPc5EhrEEX01dI_uYoWvdBYlUEWMwg\" width=\"643\" height=\"305\"><\/p>\n\n\n\n<p>After making the extreme bottom, the counter seems to be in sideways consolidation. It makes a symmetrical triangle. Whenever the counter touched support, extreme volumes were noticed. Price has been respecting the trendlines well for two years. The resistance line can be considered as a breakout for momentum buying, and the support line can be considered a bargain buying line for initiating longs with a positional mindset.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-Relative-Strength-Indicator-RSI\"><\/span><strong>Weekly: Relative Strength Indicator (RSI)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh4.googleusercontent.com\/0U9eCuXoJNQu3swdVTVUic0AXe9os4f1goeHGmkEOeO__vZrUKi-vXCOYWmIcr6dbLH-Lqu8bGXcRsNBOkVQfc8KTQ5cF1_AkGATXUD8kjzT1kz_dcdg1exWqDEVLIgWS_OxBDiKCGjfBBtN_8rTaQ\" width=\"643\" height=\"305\"><\/p>\n\n\n\n<p>Price is presently within a consolidation, but the interesting part is, from the previous low swing, the price is gaining strength on the upside. This higher top, the higher bottom may continue on resistance breakout. Do note &#8211; strength may get added to the counter on the breakout, but till then, one should remain patient and not buy in anticipation of the breakout.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-MACD\"><\/span><strong>Weekly: MACD<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh3.googleusercontent.com\/G6rq37hnUkE8xa5aV0Ubuzr9NMLmb4CXAiNsMCEokxHOjWBjnxIrlVPIePSDv6cV53TKIhbyUWCjXK0ai5GIcJNl4NuU7TxY77rZmuoltLTI6rpu5SKK7I99zm7jrwzPS2C1EGy6_J257K8648Gp0w\" width=\"643\" height=\"303\"><\/p>\n\n\n\n<p><a href=\"https:\/\/www.tickertape.in\/blog\/moving-average-convergence-divergence\/?utm_source=medium &amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Moving Average Convergence Divergence (MACD<\/a>) is a lagging indicator and confirms the trend. Though late in signalling the trend, this is highly reliable, especially when the counter enters a massive trend. Here on the weekly chart, <a href=\"https:\/\/www.tickertape.in\/blog\/moving-average-convergence-divergence\/\">MACD<\/a> crossover got confirmed below the zero line, followed by zero line crossover. Both signals confirm the likely emergence of a new trend. After massive consolidation of 2 yrs, the new trend, upon emergence, can go really sizeable. Watch out for price action, as discussed in the weekly price action section earlier.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-Ichimoku\"><\/span><strong>Weekly: Ichimoku<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh5.googleusercontent.com\/0k2Ic2iHoV1H26tXDoUAl8OCm-AZkzJMe_To71-kKwMlec3f3cxAM1RMscS-xNUIHhixy9Dp74SQA_8VmrbHYxLRi3XRYeG1YvNyXJjIoROhcpG1UjJWvb7216cBFPDSdVL1ZCWqwiltKRHWO9sP2g\" width=\"643\" height=\"305\"><\/p>\n\n\n\n<p><a href=\"https:\/\/www.tickertape.in\/blog\/ichimoku-cloud\/?utm_source=medium &amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Ichimoku <\/a>is again one of the trend following indicators. This indicator can be used in multiple ways, including a split of indicators. Tenkan &#8211; Kijun crossover confirms a short-term positive trend on the weekly chart. Future Kumo cloud bullish crossover is confirmed and widening, which confirms the likely emergence of a strong trend. The price has sustained above the cloud decisively, which is also offering the possibility of a bullish trend. All observations are supportive in nature.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-Supertrend\"><\/span><strong>Weekly: Supertrend<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh4.googleusercontent.com\/qmEt86SxuzedinstX04WbsjxYiL4Z3wqSeDf1l7GuhS5mnckQxlt7alCYB92MoAHAATLwbEdQ-nHqvCGaxl7t95Jh6703UuwSycdu50DGu1oxIDAgEqcm-_H-XUfRKMaDxLxUBsmo7wwI8IHoslN2Q\" width=\"643\" height=\"305\"><\/p>\n\n\n\n<p><a href=\"https:\/\/www.tickertape.in\/blog\/supertrend-indicator-formula-and-how-to-use-it-to-identify-buy-and-sell-signals\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Supertrend<\/a> is a trending indicator and is very simple to follow. This indicator is based on trend and <a href=\"https:\/\/www.tickertape.in\/blog\/volatility\/\">volatility<\/a>. In the past, crossover signs have delivered good returns, be they bullish or bearish. The present crossover is bullish. Looking at historical performance, I prefer to remain bullish and super trend being a good support zone.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ratio-chart-L-T-Finance-Vs-Chola-Finance\"><\/span><strong>Ratio chart: L&amp;T Finance Vs Chola Finance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"pasted-image.tiff\" src=\"https:\/\/lh6.googleusercontent.com\/_V9oI3FAJY1GVTteQcHNvdaiWOIPgk928UgQ9NX6DDF6IWU8oXGa0g-UrTJr48Q234a2b33jGq1zkF4BKVEUFVXZP87ooE6xV2T4yvciWL3kw7EsvxqHdHV7v1zWOWHU1yY1svlrW4CxOS5Vb0wDiA\" width=\"643\" height=\"305\"><\/p>\n\n\n\n<p>The ratio chart is of L&amp;T Finance and Chola Finance. The chart seems in a clear uptrend as per the recent price action. Though right now near the resistance, the trend remains positive. A positive trend on the ratio chart means likely outperformance of L&amp;T finance over Chola Finance in the mid-term.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Putting-it-all-together\"><\/span><strong>Putting it all together<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After looking at the monthly cycle of 30 periods, price action on the weekly chart (forming a symmetrical triangle), strengthening <a href=\"https:\/\/www.tickertape.in\/blog\/relative-strength-index\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">RSI<\/a>, MACD crossover and trending above zero line &#8211; confirms the likely trend continuation of the bullish trend on L&amp;T Finance. The Supertrend crossover, Ichimoku crossover of Tenkan &#8211; Kijun with bullish future cloud and volume actions also suggest the same.<\/p>\n\n\n\n<p>The ratio chart confirms the likely outperformance of L&amp;T Finance over its peers. One can consider this counter from a trading to an investment perspective.&nbsp;<\/p>\n\n\n\n<p><br><strong><em>Statutory Disclosure:<\/em><\/strong><em> Kindly note that this update is only for educational purposes. It is safe to assume that my personal position, my fund\u2019s position, my client\u2019s position and my relative\u2019s position may be open on the counter. Prefer to take the advice of your financial advisor before initiating any position.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Read Kunal Rambhia\u2019s views on L&#038;T Finance &#8211; if the counter can be considered for trading to an investment perspective.<\/p>\n","protected":false},"author":73,"featured_media":11867,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1770],"tags":[905],"acf":[],"modified_by":null,"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2023\/02\/31-Jan-2023-LT-Finance-Another-finance-company-to-watch-out-for-positional-trade-Guest-Kunal-Rambhia-17.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/11853"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/73"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=11853"}],"version-history":[{"count":5,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/11853\/revisions"}],"predecessor-version":[{"id":11870,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/11853\/revisions\/11870"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/11867"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=11853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=11853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=11853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}