Sudarshan Sukhani of s2analytics.com is bullish on L&T and has recommended buy rating on the stock while remain bearish on Bank of India as stock like to go down to Rs 250.
Sukhani told CNBC-TV18, “Larsen and Toubro (L&T) has done all the right things after its results came out. It was battered and bruised and it was suggesting lower levels but like TCS something has changed. So at this point, if the markets are likely to remain choppy or go up for the day, L&T seems to be an appropriate buying opportunity. It’s showing relative strength and that is always good news in a market that wants to go up.”
He further added, “However, the Bank of India’s charts are bad apart from the fact that they have broken their original support levels. Many stocks were at support levels and one by one, they have cracked that support. The small rally in Bank of India was apparently a bear flag. The targets for this are horrifying; it could be Rs 250 or the downside. That is not the target for this trade, this maybe Rs 290-292 but the trade is on the short side. Assuming there is a rally and that is possible because we are deeply oversold all over, that rally should be sold into for banks at least.”