There is a saying that in Bull market - traders buy the dips (bad news). Will they apply this rule to L&T stock?
Here's the L&T Daily Chart
As you can see in the chart above: L&T stock first made a small rally in Nov 2013 but then lost steam and pulled back to 100 dma. And then for fairly long time - stock traded at 100 dma before taking off in a big way. The stock rallied from 980 to 1750 in less than 4 months. Post this big rally, the stock first traded sideways and then sold off in big way on earnings.
The stock is now once again at 100 dma. Has stock absorbed all the supply and once again ready to rally? We will see
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers