Stock of the week - Larsen & Toubro Infotech Limited For Target Rs.8583 By GEPL Capital
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Larsen & Toubro Infotech Ltd
Observation
* LTI on the monthly time frame has been forming a higher high higher low pattern since May 2020. indicating that the long term trend of the stock is strongly bullish.
* On the weekly chart we can see that the prices moved above the 20 Week SMA on 7th June 2021 and the prices have managed to sustain above the same ever since.
* We have also shown the Bollinger Bands on the weekly time frame where in we can see the prices ride the upper Bollinger bands.
* On the indicator front the RSI plotted on the weekly chart moved above the 50 mark in the month of May 2020 and has managed to sustain above the same ever since, indicating presence of bullish momentum in the prices.
* Going ahead the 7947 (78.6 extension level of 3525-6498 projected from 5610 levels) is going to act as a resistance level, if the prices breach above the 7947 mark we might see the prices move higher towards the 8583 (100% extension level of 3525-6498 projected from 5610 levels)
* The 6680 (Weekly low) will act as a support level, post which we might see the prices move lower towards 6264 (3 week low).
Inference & Expectations
* LTI from a long term perspective seems to be in a strong bullish trend.
* The technical parameters and the indicators mentioned above, point towards the possibility of increasing bullish momentum in the trend.
* We expect this momentum to take the prices towards 7947 followed by 8583 eventually.
* On the downside the 6680 mark will act as a support level if the 6680 level is breached we might see the prices move lower towards 6264 mark.
* One can buy LTI at current levels with a target of 7947 and 8583 with a strict stop loss of 6680 on closing basis.
Larsen & Toubro Infotech Limited. LTP : ₹7243.35 Target: ₹8583 Stop Loss : 6680
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