Short L&T, says Shubham Agarwal

Shubham Agarwal of Motilal Oswal Securities told CNBC-TV18, "The overall sectoral view also remains negative and capital goods is something which we have been recommending from a long time and it still continues to remain negative. So, given the fact that the important support of around Rs 1,400 was breached on Larsen and Toubro (L&T) and after that we are seeing multiple continuation patterns getting formed. Even if you look at some of the peer stocks like BHEL, similar structure follows there.""With this development, we expect that any pullback in L&T will be a good opportunity to go and sell. Even at the current level a short call can be created, so we are looking for a target of Rs 1,120 with a timeframe of one to one and half month and the stoploss for the same can be kept at Rs 1,400," he added.