L&T: An attractive buy

Deepak Singh Tanwar

Larsen & Toubro stock seems to be ready for a rally. The stock had fallen from Rs 201 to Rs 141 during the first week of November. But performance has been impressive after this fall. Although the stock has tested this level twice, it has managed to remain above this level. In fact, the stock has also managed to form a higher bottom at Rs 142.50.

The formation of a higher bottom is a good sign and hints at a rally. The position of oscillator is also encouraging and favours a positive outlook. A smart jump in volumes further confirms the bullish momentum. An expected rally can last upto Rs 164 as this is the next resistance level for the stock. Take a long position at the current level. Keep a stop loss at Rs 141.

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