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.
Article by Reshma Kapadia of Barrons.com
China is the 800-pound panda in any conversation about what is going on in the world today. The nation dominates the headlines, is the most-cited reason for sleeplessness among corporate executives, and puzzles investors daily. China looms particularly large for investors in the emerging markets: It represents an uncomfortably outsize stake in most portfolios. And fund managers are getting nervous.
The challenges are daunting. China is growing at its slowest pace in decades — a slowdown that began before the trade war. In past downturns, Beijing printed massive amounts of money to stimulate the economy, but that has resulted in high government debt that prevents it from taking similar measures now. China has also been bracing for a protracted struggle in the conflict with the U.S. over not just trade, but also technology and geopolitical leadership. To complicate the situation, mass pro-democracy protests in Hong Kong that began in June are still going strong, presenting the biggest threat to Beijing’s power in decades.
Not surprisingly, stock investors are reassessing their China stakes and have pulled $13 billion out of equities this year, according to EPFR Global. Meanwhile, the MSCI Emerging Markets index is increasingly a China play: Nearly a third of its weighting is in China, up from 19% just five years ago. Continue reading Emerging Market Funds Try to Sidestep China