Technical Query Corner: Lupin, MMTC, NTPC, DLF, Jet Airways, L and T, :: Business Line

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Kindly enumerate on the long-term outlook for L&T purchased at Rs 1,928.

R.M. Kumarappan

Larsen and Toubro (Rs 1,161.5): Larsen and Toubro has long-term resistance in the zone between Rs 2,200 and Rs 2,400. It peaked in this zone in November 2007 and again in November 2010. The stock is in a long-term decline since its November 2010 peak that has resulted in a decline of 55 per cent.

Key long-term support for the stock is at Rs 1,196. The stock declined below this level but is trying to form a base around the psychological support at Rs 1,000. This level also coincides with the downward gap formed in May 2009.

Decline below Rs 1,000 can prove disastrous for the stock since the next support is far below at Rs 557. Investors can, therefore, consider divesting their holdings on decline below Rs 1,000.

Resistances for the months ahead would be at Rs 1,460 and Rs 1,752. Long-term ceiling will continue to be at Rs 2,200.