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L&T Technology Services

Observation

* On the monthly chart, we can see that LTTS has been forming a higher high higher low pattern since May 2020. 

* On the weekly time frame we can see that the stock broke out of a prolonged consolidation in the previous week. This up move was backed by huge volume buildup, indicating participation as the prices moved out of a consolidation.

* On the daily charts, we can see that the prices have given a consolidation breakout with a ‘Break away Gap’ and after that it has also given a ‘Flag’ pattern breakouts with volume confirmation which show strong positive undertone of the stock for the short to medium term.

* On the indicator front, the RSI plotted on the weekly time frame moved above the 50 mark since 6th July 2020 and has remained above the same ever since. Currently it seems to be moving higher as the price test fresh highs indicating expanding volatility. The MACD placed above the zero line can be seen forming a bullish crossover, indicating that the underlining trend on the medium term remains bullish.

* Going ahead the immediate resistance is placed at 3753 (61.8% extension level of the rise from 995-3062 projected from 2476) followed by 4100 (78.6% extension level of the rise from 995-3062 projected from 2476).

* Our bullish view will be negated if the prices move below the 3346 (Weekly low), if the prices sustain below the 3346 mark we can expect the prices to move lower towards the 3065 (5th April 2021).

Inference & Expectations

* LTTS has been in a long term bullish phase.

* On the medium term charts the prices can be seen forming a higher high higher low pattern after breaking out of a consolidation.

* We expect the bullish momentum to take the prices higher towards the 3753 mark immediately.

* If the level of 3753 is breached we can expect the prices to move higher towards the 4100 mark. 

* Our bullish view will be negated if the prices breach below the 3346 mark beyond which we can expect the prices to move lower towards the 3065 mark.

* One can Buy LTTS at current levels for the target of 3753 and 4100 levels with a strict stop loss of 3346 on closing basis.

Buy L&T Technology Services Ltd LTP 3496 TGT 4100 SL 3346

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