Stock Performance YTD: 0%
The stock performance so far has been disappointing in 2015 but the stock structure continues to be bullish and hence provides lot of hope to long term investors in the stock.
Here's the Daily Chart of L&T covering 2015
There are couple of times stock has tried to rally but stalled at 1880. The big question: Is the stock a BUY? Why many investors are optimistic? The answer is in the weekly chart
Bullish Stock Structure on weekly chart
L&T broke out to new high above 1400-1450 in May 2014 post Modi's victory. Since then the stock has been consolidating and it's matter of time before stock takes off. The longer the stock consolidates, the healthier and stronger the momentum breakout move will be. So even if stock has not done anything great in last 15 months - there is reason to be optimistic on the stock. Breakout and Bullish Consolidation is always considered Super Bullish
The HOPE LINE/SUPPORT on weekly chart
The real disappointment will come only when stock breaks down below 1400 and then yes all the optimism will vanish. But as of now, the stock continues to be on investment radar.
Please do your own due diligence before trading or investment. Do not treat the above as any recommendation
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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