Add Larsen & Toubro to portfolio, says Bhavin Desai

Bhavin Desai of Motilal Oswal Securities told CNBC-TV18, "We have been following certain statistical models and somehow which is a completely independent study based on parameters which has nothing to do with technicals but it has been reasonably right. Somewhere we are seeing signs of outperformance in infrastructure space and Larsen & Toubro (L&T) being major wieghtage holder, it looks like that we have done too much in terms of fall. I am not saying it is reversal, go ahead and buy, put it in your portfolio at least. However, there could be a pullback on cards.""Looking at the charts, there is one particular factor which is the momentum indicators so to speak which would be giving some signals of that and a positive divergence on RSI is at least giving us some amount of confidence that there could be some bit of pullback. So, keeping a swing low of Rs 1,070 as stop loss looks like this pullback actually can go up to Rs 1,200," he said.