Invest in L&T for long term: Doctor

According to Parag Doctor, Head of Trading Strategies at Keynote Capital, L&T should be much better stock for the longer-term compared to Punj Lloyd.

Doctor told CNBC-TV18, “We have a sell rating on Punj Lloyd at current price. There has been a sharp pullback rally from around the Rs 40 level to the current price Rs 48, almost a 20 percent pullback; maybe this could extend further. But the key technical level to watch on the upside is around the Rs 53 level which is where the long-term 200-day average is.

“So, most likely the stock could not cross that in a hurry and there could be correction from the Rs 53 back towards Rs 40 level. Investor should reduce its positions in this rally and wait for lower levels to get back in or what I would advice him is to get into large cap stock in the same space like Larsen and Toubro (L&T). L&T should be much better stock for the longer-term and the prospects would be much higher for higher appreciation than compared to Punj Lloyd,” Parag Doctor added.