Hot Stock and Share tip for NSE and BSE for June 21, 2010: Buy Larsen&Toubro
June 19, 2010 by admin
Filed under Analyst's Corner, General
FREE Hot Stock and Share tip for NSE and BSE for June 21, 2010: Buy Larsen and Toubro (L&T)
On the Weekly Charts of L&T has made an Inverse Head & Shoulders Pattern, which is Bearish Reversal pattern. The stock has made overwhelming gains since last two days.
Stock has given a good breakout, supported with the volume on the charts. It made a high of 1817.50 on Friday and closed at 1798.50 for the day. 14-Days RSI (Relative Strength Index) has strengthened and is quoting at 66.97 on the Weekly Charts (RSI below 50 indicates weakness or confirms the Selling signal).
The Positive Directional Index (24.19) has crossed the Negative Directional Index (16.78), ADX (Average Directional Index) has gained strength on Daily charts and is quoting at 14.03 on the Weekly Charts. ADX’s value above 20 and near 40 indicates that the underlying trend is strengthening.
Hence, it is buy L&T at the levels of 1798-1800 for the Targets of 1975 & 2000, with the Stop Loss of 1600.
Sonal Natani MS(Finance), ICFAI, Hyderabad.
