Jain Irrigation Systems, Larsen and Tubro- Pre Budget Technical Stock Picks :: HDFC Securities

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Jain Irrigation Systems

Observation: • The stock is showing positive bias for the short term or medium term; the above “daily chart” of “Jain Irrigation” is showing bullish evidences as per Japanese candle stick, western technicals and Elliot wave perspective. • Price has formed a “Hammer candle on weekly chart which is an initial confirmation of bullish reversal. Also price has tested the median line of the pitchfork on daily charts (see above). As per pitchfork setup the stock could attempt to test the upper line of the pitchfork or retrace 50% of the last fall. • In addition price has completed zigzag pattern (5-3-5) in the last fall which indicates some major bottom has formed at 47 level. From here price could rally or at least it could retrace 61.8% of the entire zigzag before the next falling leg. • Interestingly “wave c” seems to be truncated which is strong bullish confirmation. For safer side one can initially play for retracement levels of “wave c”. The 61.8% retracement level of “wave c” is placed at 59. • Traders can buy the stock between CMP to 51 with the stoploss of 49 on closing basis for the targets of 59 - 65.

L&T
Observation: • The stock is showing positive bias for the short term; the above “weekly chart” of “L&T” is showing bullish evidences as per Japanese candle stick, western technicals and Elliot wave perspective. • Price has formed a strong bull candle on weekly chart which indicates bulls have resumed their momentum. Along with this price has formed a higher high and higher low on daily chart which is a bullish dow formation, indicating continuation of bullish structure. • In addition price has completed the internal “wave iii” at 1016 and started to retrace upward which would be marked as “wave iv”. Positive divergence in RSI confirms that price is heading upwards. • “wave ii” is smaller so “wave iv” could retrace 61.8% of “wave iii” which is placed around 1249. Make note after completion of “wave iv”, “wave v” down could begin which could revisit the bottom of “wave iii”. • Traders can buy the stock between CMP to 1100 with the stoploss of 1081 on closing basis for the target of 1249