L&TFH has formed a beautiful triangle and has not been able to breach the levels of 75 for a while now. It has spent a lot of time ranging between 67 and 58.
Now it has formed a triangle within that range and any breach of the same might take the price higher/lower from such levels. The market is not looking too optimistic about the Financial stocks. It feels that a lot of stress is going to be seen coming into the next few Quarters.
Banks have been directed to not declare any accounts NPA's post 31st August which marks the 6 month period from March (A time period post which accounts are declared as NPA's), so any person who has actually not paid his dues is still considered good. When this numbers pop up it might be much bigger than the provisions the companies are making for such loss, which will eventually affect all the financial stocks (Banks , NBFC's specifically).
While Investment wise we have to see how things pan out over the period, trading wise it is always good for a trader to trade either side not being concerned of the market movement.
You can use the Moving averages as support and resistance and trade it for the long/short side depending on the breach.
Now it has formed a triangle within that range and any breach of the same might take the price higher/lower from such levels. The market is not looking too optimistic about the Financial stocks. It feels that a lot of stress is going to be seen coming into the next few Quarters.
Banks have been directed to not declare any accounts NPA's post 31st August which marks the 6 month period from March (A time period post which accounts are declared as NPA's), so any person who has actually not paid his dues is still considered good. When this numbers pop up it might be much bigger than the provisions the companies are making for such loss, which will eventually affect all the financial stocks (Banks , NBFC's specifically).
While Investment wise we have to see how things pan out over the period, trading wise it is always good for a trader to trade either side not being concerned of the market movement.
You can use the Moving averages as support and resistance and trade it for the long/short side depending on the breach.