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Technical Observations

* The stock has generated a breakout above the bullish Flag pattern signal resumption of the primary up trend and offers fresh entry opportunity

* The share price is in strong up trend forming higher peak and higher trough in long term chart. The 20 weeks EMA has acted as strong support for the stock in the entire up move since May 2020 as can be seen in the adjacent chart. The stock has recently rebounded taking support at the 20 weeks EMA highlighting robust price structure

* It has immediate support at | 3850 levels as it is the confluence of the current week low and 50% retracement of the current up move (| 3570-4150)

* The weekly stochastic has generated a buy signal moving above its three periods average thus validates positive bias

* Based on the above technical observations, we expect the stock to continue its current positive momentum and head towards | 4435 levels as it the 138.2% extension of the previous week up move (| 3570 to 4015) as projected from recent low | 3820 signal up side towards | 4435 levels

Buy Larsen & Toubro Infotech Ltd @ 4020.00-4070.00 TGT 4435.00 SL 3830.00

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