Trade Idea of The Day - Larsen & Toubro Ltd Target Rs. 5 - Religare Broking Ltd
Larsen & Toubro Ltd
SELL 30 JUN 4000 PUT BUY 30 JUN 3800 PUT Entry Range 45 – 50 Target 5 Stop Loss 80
Rationale
• On the daily chart LT witnessed a steady recovery from lower levels and is now trading above its key moving averages of 20-DEMA and 50-DEMA zone, indicating improving price structure with a bullish traction for the upcoming sessions.
• Momentum indicators are showing early signs of strength, as RSI has moved above the 50 mark while MACD histogram witnessed a bullish crossover on the daily timeframe, suggesting gradual improvement in bullish momentum.
• On the downside, the 3950 zone is aligned with the 50-DEMA and expected to act as an immediate support area, where any dip may attract fresh buying interest from market participants.
• Overall, as long as the stock sustains above the crucial 4000 mark, the broader bias is likely to remain sideways to bullish, with potential upside towards the 4150-4200 zone in the near term.
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SEBI Registration number is INZ00017433
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