L&T has been one of the main laggards in Nifty index since last 2 years, and the stock continues its under performance even now! Investors should not make any fresh investment in L&T stock till it crosses 1400. The market seems to be telling investors that L&T is not doing things correctly. The stock has a tendency to make sudden sharp upmoves, which maybe short covering.
But a reliable upmove has not been seen in L&T stock in a very long time. While the company is exposed fully to the slowdown in Indian economy, there seems to be something more. Bearish set up with target 1200. Avoid!
The weekly chart is very bearish and 1200 is looking imminent target.
The monthly chart is also bearish and even 1000 is possible because of the constant bearish signals. The stock is unable to hold any gains at all, which means large investors have been dumping the stock all along. Avoid L&T stock till it closes above 1400 on monthly basis.