Ashish Chaturmohta Sanctum Wealth Management
Larsen & Toubro touched a high of Rs 1470 in February this year and had been in sideways to negative correction mode between Rs 1470 and Rs 1182 levels for the last nine months.
Now, the stock crossed its falling resistance trend line which connected highs of Rs 1470, Rs 1425 and Rs 1390 on the weekly chart and continues to trend higher. Thus, signaling the end of correction with a sharp rally from lower levels.
MACD line has given positive crossover with its average and moved above equilibrium level of zero on the weekly chart. Thus, the stock can be bought at current levels and on dips towards 1395 with a stop loss below Rs 1360 and a target of Rs 1600 levels.
Disclaimer: The author is Head of Technical and Derivatives at Sanctum Wealth Management. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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