Trade Idea of The Day - Larsen & Toubro Ltd Target Rs. 80 - Religare Broking Ltd
Larsen & Toubro Ltd
BUY 29 SEP 4000 PUT SELL 29 SEP 3900 PUT Entry Range 30 – 35 Target 80 Stop Loss 10
Rationale
• LT has witnessed a bearish continuation setup on the daily chart with the lower highs pattern. The stock is currently trading below the key short-term moving averages of the 20-DEMA and 50-EMA, which may act as immediate overhead hurdles in the near-term.
• The broader structure remains under pressure as the prices continue to trade below a falling trendline, which has repeatedly capped recovery attempts. A decisive move above 4,100-4,150 would be required to negate this bearish formation; until then, selling on the rise may remain preferable.
• Momentum indicators are also turning weaker. 14-Day RSI is hovering near the 40 mark, reflecting fading buying strength and a shift towards a bearish-neutral zone. Meanwhile, MACD has weakened with the histogram turning negative, suggesting downside momentum in coming sessions.
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