Shares of Larsen & Toubro (L&T) climbed for the fourth straight session today. The stock surged as much as 2.38 per cent to hit a day high — also its 52-week high — of Rs 2,173.95. It eventually settled 206 per cent higher at Rs 2,167.30. A total of 76,000 shares changed hands today on BSE, amounting to a turnover of Rs 16.30 crore. The company’s market capitalisation or m-cap stood at Rs 3,04,584.57. The stock has jumped 3.45 per cent in the last five sessions. On a year-to-date (YTD) basis, it has jumped 12.59 per cent.
Analysts largely remained ‘positive’ on the counter and suggested “a strong uptrend.” However, one analyst also observed that the stock “is overbought and investors should book profits at current levels.”
Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One Ltd, said, “L&T is in a cycle of higher highs and higher lows and is placed at its all-time high. The stock has seen a strong rally post its breakout near the Rs 2,000-odd levels, and since then it has managed to outperform the benchmark index. On the technical front, the stock has strong support near Rs 2,050, and any short-term blip towards the same could be considered healthy after the huge up move and could augur well for the bullish players. On the higher end, the stock looks promising to continue its northward journey in uncharted territory.”
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Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, suggested buying the stock at Rs 2,125 levels, while maintaining a stop loss at Rs 2,050, for a target price of Rs 2,200-2,240.
On the technical front, Shah said, “L&T on the daily chart has been trading in a strong uptrend. The momentum oscillators are in a strong buying zone which confirms the strength of the stock.”
Mahesh, Prakot, Technical Research Analyst, Bonanza Portfolio Ltd, said, “Since March 2020, the stock has been rising continuously in a well-channelized manner. On a weekly time frame, prices have respected the channel’s upper and lower trend line every time it has touched. On the momentum front, the MACD (Moving average convergence/divergence) histogram is hovering in the positive territory with an inclining trajectory that points to a strong momentum. The momentum indicator RSI (14) has crossed 70 marks confirming the internal strength.”
Pavitraa Shetty from Tips2trades, said, “Excellent Q2 FY23 results with improving sentiment towards Indian equities has led to a strong rally in Larsen & Toubro. Currently, the stock is overbought and investors should book profits at current levels and wait for a dip near Rs 1,980. Immediate resistance is at Rs 2,200.”
On the earnings front, L&T posted a 23 per cent year-on-year (YoY) rise in its consolidated net profit, at Rs 2,228.97 crore, during the September quarter (Q2).
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Meanwhile, Indian equity benchmarks settled on a higher note today, led by gains in state-owned lenders.