L&T stock lost 43% of its value between July 2015 and Feb 2016. It dropped from levels of 1850 to 1050. The Chart speaks for itself.
Here's the daily chart between July 2015 and Feb 2016
For a Long time - L&T stock was a symbol of HOPE when it developed solid base around levels of 1400 (June 2014 and October 2015)
Was there any warning sign that stock can collapse like this...
Yes when it broke down below 1400 in Nov 2015
The stock lost 25% post breakdown below 1400. It declined from 1400 in Nov 2015 to 1050 in Feb 2016
Now in last 2 months of recovery - stock has rallied 20% from lows but technically stock has a long way to go before it starts to inspire confidence among Bulls. The only thing working for stock - Large Cap stocks are becoming fav again and if FIIs continue to pump in money - it's bound to lift stocks like L&T. A rising tide lifts all boats. But technically - the stock has lot more to do to stand on its own feet
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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