Larsen & Toubro Ltd. - Broke the Support

Larsen & Toubro Ltd.

• After the sharp rise from 1310 to 1657 (spot), the L&T Ltd breached a support trendline and sustained below that level.
• Momentum indicator RSI is showing negative divergence pattern in intraday chart, which indicates a possible correction on cards. Negative crossover of RSI and its average also indicates weakness in the stock.
• MACD and Stochastic Oscillator also took downward direction and moved below their respective averages, which supports the sell call on the stock.
• Stock may reach to Rs 1525, which is 38.20% retracement level of 1310-1657.