Shardul Kulkarni, senior technical analyst at Angel Broking told CNBC-TV18, “In Larsen and Toubro (L&T) we are seeing a very strong head and shoulder breakdown and I think the February Futures contract is the right contract to sell. So, Rs 1020 would be the stop loss on the higher side. We expect the stock to move down to around Rs 950 or probably even lower levels over the next couple of days."
He further added, "LIC Housing Finance also has given a trendline breakdown on the daily charts. We feel that 208.50 on the February Futures contract is a good stop loss. On the lower side stock might move toward Rs 191 or probably even Rs 185 over the next couple of trading sessions. These are two sell calls which we would initiate."
"Buying is recommended in case of IT counters but it makes a lot of sense to wait for little lower levels. So, if TCS comes down by another 4-5 percent or if Infosys comes down to about Rs 3500, at those levels one can look at buying into those companies. However, at this point of time two sell calls is what I would go with."
Disclosure: Analyst may have recommended the above stocks to his clients.
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