Short L&T with stoploss of Rs 1625: Manghnani

Short Larsen and Toubro (L&T) with stoploss of Rs 1625, says Anil Manghnani, Modern Shares & Stock Brokers.

Manghnani told CNBC-TV18, "In Larsen and Toubro a couple of weeks back at about Rs 1,620 also I gave a short. I am not surprised that it has come down. Overall it has not participated at all and it is just drifting down. Whenever the Nifty has a bad day, L&T would take it on the chin."
He further added, "It had already fallen, so maybe a slight pullback back to Rs 1,580-1,590 and then right upto Rs 1,620 remains a short with Rs 1,625 as a stoploss. However, I think just the way it has broken down below the 50-day moving average (DMA) now should head closer to the 200-DMA, which is placed somewhere around Rs 1,500 mark."
"Like the Nifty, maybe some exhaustion – not a confirmation sell but around 12,800 mark there is a resistance. It is respecting that for now. I still think maybe we would see one move up before some sort of a meaningful correction just like the Nifty."
"I have gone for a bank stock today which has corrected after a decent move. Canara Bank went all the way up to Rs 530 and come back to about Rs 508-509, which is the 10-day average. It will hold that and start to pull back up. Even if you are looking at a day trade, you can look for Rs 508 as a stoploss and a pullback closer to Rs 524."