Larsen & Toubro (Cash):
- Stock has seen sharp rally from the bottom of around 850 and rallied till 1208. The level of 1200 coincided with the trend line resistance by joining the peaks of early March 2015 and mid-July 2015 respectively.
- As a result, stock slipped into a broad consolidation below the said trend line. In that consolidation, we are seeing the formation of Double Top pattern.
- The said pattern is a reversal pattern and the neckline of said pattern comes near 1094.
- The daily RSI (14) has indicated shift in range hence the possibility of breaching the neckline is quite high.
- Thus, we recommend traders to build short position in a range of 1130 to 1140 with a price target of 1000. Strict stop loss should be placed at 1210.
Bharti Infratel (Cash):
- Stock has seen decent rally from the bottom of around 270 and hit a fresh 52-week high of 425. Subsequently, we witnessed profit booking and stock tested the daily 89-EMA placed near 378.
- Looking at daily chart, stock has formed a Bearish Divergence and now the daily RSI (14) indicates an oversold condition.
- On a weekly line chart, stock has precisely tested its previous resistance zone which should serve act as an immediate support.
- The weekly 9-45 EMA is still positive indicate that the primary trend is still up.
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- Hence, we recommend traders to buy this stock at current level of 382 with a price target of 435. Stop loss should be placed at 356.
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