L&T Finance Breaks Out Of Multi-year Range: SEBI RA Rajneesh Sharma Sees Over 40% Upside Potential

The analyst spotted a high-conviction bullish pattern in the stock backed by fundamentals and strong technicals.

The technical setup for L&T Finance reflects a multi-layered bullish structure, supported by both price patterns and Fibonacci precision, said SEBI-registered analyst Rajneesh Sharma.

The stock has formed a large, multi-year W pattern, also known as a double bottom. The left bottom was formed during the 2018 correction near ₹50, and the right bottom was established around the COVID-19 lows in March 2020 at similar levels, Sharma noted.

The neckline in the ₹190 - ₹200 range was tested multiple times between 2021 and 2024 before a clean, high-volume breakout finally confirmed the pattern in 2025, he noted.

L&T Finance shares also formed a cup and handle structure, with the rounded base of the cup developed between 2018 and 2024, followed by a shallow handle consolidation in 2024, the analyst said. The breakout above ₹190–₹200 was backed by the highest volume in five years.

Based on Fibonacci projections, this move aligns perfectly with the 1.272 extension near ₹237 and the 1.618 extension near ₹288, suggesting strong medium- and long-term upside potential.

The stock has respected Fibonacci retracement levels perfectly, noted Sharma. Minor consolidation around ₹79 in 2020, significant resistance near ₹102 until 2021, and consistent reactions at ₹138 and ₹165 all led up to a breakout beyond the key resistance at ₹190.

With the previous all-time high of ₹198 now reclaimed, the bullish case grows stronger with targets of ₹237 and then potentially ₹288, he said.

Traders should look out for potential near-term resistance around ₹200-₹210 or a retest of the ₹190-₹195 zone. A decisive breakdown below ₹190 on strong volume would invalidate the structure, Sharma concluded.

Retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ a day ago, amid ‘extremely high’ message volumes.

The stock closed 1.5% lower at ₹203.03 on Friday. It has gained 49.7% year-to-date (YTD)

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