The stock, also part of the S&P BSE Sensex, hit a fresh record high of Rs 2297 on 20th January 2023 but failed to hold on to the momentum. However, it did find support above the 50-DMA every time there was a dip.
L&T stock closed at Rs 2273 as on 6th April 2023. The momentum seen in the stock in the last month helped the L&T to break out from a falling channel pattern on the daily charts.
The stock is up more than 5% in a week and nearly 9% in the last 3 months.
The breakout has now opened doors for the stock to inch towards Rs 2400 levels in the next 2-3 months, suggest experts. The neckline of the pattern was placed at Rs 2230.
In terms of price action, the stock is now trading above most of the short and long-term moving averages of 5, 10, 30, 50, 100, and 200-DMA on the daily charts.
The Relative Strength Index (RSI) is 64.1, RSI below 30 is considered oversold, and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal Line, a bullish indicator.“L&T stock is in an overall uptrend and forming higher lows on a monthly scale from the past ten months. On the weekly scale, the stock is consolidating from the past eleven weeks and has formed a strong bullish candle,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.
“On the daily scale, the stock has given a breakout from its channel pattern and a strong Bullish Marubozu candle with noticeable volumes. RSI (Relative Strength Index) has given breakout on the daily scale above 60 zones, which suggests momentum is likely to continue in coming sessions,” he said.
Strong outperformance is seen in overall capital good space, and stock is all set to move higher to hit its new lifetime high.
“Looking at the overall chart set up, we expect the stock to move higher towards 2400 zones in coming days with a stop loss below 2190 levels on a closing basis,” recommends Beriwal.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of Economic Times)
