Key Events This Week
23 Feb: Stock opens at Rs.299.60, gains 0.64% amid positive market sentiment
24 Feb: Price dips 0.78% as Sensex also declines by 0.78%
25 Feb: Sharp open interest surge and price rally to Rs.303.40 (+2.07%)
26 Feb: Open interest spikes 21.9% despite 1.12% price decline to Rs.300.00
27 Feb: Intraday low of Rs.281.35 amid heavy selling; closes at Rs.284.35 (-5.22%)
23 February 2026: Modest Gains Amid Positive Market Sentiment
L&T Finance Ltd began the week on a positive note, closing at Rs.299.60, up 0.64% on the day. This outperformance was slightly ahead of the Sensex’s 0.39% gain, reflecting early optimism in the stock. Trading volume was moderate at 1,02,851 shares, signalling steady investor interest. The stock’s relative strength was supported by broader market momentum and sectoral tailwinds in the NBFC space.
24 February 2026: Price Retreats in Line with Market Correction
On 24 February, L&T Finance Ltd’s price slipped 0.78% to Rs.297.25, mirroring the Sensex’s 0.78% decline. The volume dipped to 88,385 shares, indicating a cautious trading environment. Delivery volumes also declined by nearly 15%, suggesting reduced long-term holding interest. This day’s price action reflected broader market concerns and sector-specific uncertainties impacting NBFC stocks.
25 February 2026: Sharp Open Interest Surge Spurs Price Rally
The stock rebounded strongly on 25 February, gaining 2.07% to close at Rs.303.40 on heavy volume of 4,41,813 shares. This rally coincided with a 12.3% surge in open interest in the derivatives segment, signalling increased bullish positioning among traders. The futures and options notional value reached ₹54,562 lakhs, underscoring heightened market activity. L&T Finance Ltd outperformed its NBFC peers by 2.05%, supported by technical strength above key moving averages and a robust mojo score of 65.0 (Hold rating at the time).
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26 February 2026: Open Interest Surges Amid Price Pressure
Despite a 1.12% decline to Rs.300.00, L&T Finance Ltd saw a remarkable 21.9% increase in open interest, rising to 46,684 contracts. This divergence between rising derivatives activity and falling prices suggests complex market positioning, possibly involving fresh short positions or hedging strategies. The stock underperformed the NBFC sector by 2.28% and the Sensex by 2.68%. Delivery volumes dropped 23.84%, indicating reduced long-term investor participation. The stock traded below its 5-day to 100-day moving averages but remained above the 200-day average, signalling short-term weakness amid longer-term support.
27 February 2026: Intraday Low and Heavy Selling Pressure
L&T Finance Ltd experienced significant price pressure on 27 February, falling 5.22% to close at Rs.284.35, with an intraday low of Rs.281.35. The stock underperformed both the Sensex (-1.16%) and the NBFC sector (-3.37%). Trading volume surged to 9,65,930 shares, with a traded value of approximately ₹130.18 crores, making it one of the most actively traded stocks by value. Technical indicators showed the stock trading below all key moving averages except the 200-day, reflecting short- to medium-term bearish momentum. The decline followed two consecutive days of losses, cumulatively erasing nearly 6.44% of value.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-23 | Rs.299.60 | +0.64% | 36,817.86 | +0.39% |
| 2026-02-24 | Rs.297.25 | -0.78% | 36,530.09 | -0.78% |
| 2026-02-25 | Rs.303.40 | +2.07% | 36,679.75 | +0.41% |
| 2026-02-26 | Rs.300.00 | -1.12% | 36,748.49 | +0.19% |
| 2026-02-27 | Rs.284.35 | -5.22% | 36,322.56 | -1.16% |
Key Takeaways
Positive Signals: The surge in open interest on 25 and 26 February indicates strong market interest and liquidity in L&T Finance Ltd’s derivatives, suggesting active positioning and potential for future price movements. The stock’s long-term performance remains robust, with a 1-year return exceeding 120% and a recent upgrade to a Buy rating by MarketsMOJO, reflecting improved fundamentals and technical momentum.
Cautionary Signals: Despite the derivatives activity, the stock’s price declined sharply in the latter part of the week, underperforming the Sensex and NBFC sector. Delivery volumes have decreased significantly, indicating reduced long-term investor holding. Technical indicators show the stock trading below key moving averages, signalling short- to medium-term weakness. The valuation remains elevated, with a PE ratio above 26 and a PEG ratio of 2.6, suggesting limited margin for error in earnings growth.
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Conclusion
L&T Finance Ltd’s week was characterised by heightened volatility and mixed signals. Early optimism and a strong surge in derivatives open interest on 25 February were offset by price declines and heavy selling pressure in the final two trading sessions. The stock’s underperformance relative to the Sensex and NBFC sector, combined with declining delivery volumes and technical weakness, suggest a cautious near-term outlook.
However, the recent upgrade to a Buy rating by MarketsMOJO, supported by improved technical momentum and solid long-term returns, indicates underlying strength and potential for recovery. Investors should monitor key technical indicators, open interest trends, and sector developments closely. The stock’s position above the 200-day moving average provides some longer-term support, but short-term price action warrants careful risk management amid ongoing market uncertainties.
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