Stocks to buy: Larsen & Toubro (L&T) share price remained flat on Monday as the large-cap stock has failed to deliver returns over the past month. L&T stock gained just over 9% in three months and is up just 1.6% year-to-date (YTD).
However, analysts believe that L&T stock is technically poised to see a decent upside momentum. Sumeet Bagadia, CEO of Choice Broking, has recommended the index heavyweight Larsen and Toubro shares as their pick for Independence Day.
Based on technical analysis, Bagadia suggests L&T as his stock to buy and advises adding more on dips.
Here is Sumeet Bagadia’s Independence Day stock recommendation:
Buy L&T in ₹3,592 | Target price: ₹3.925 – ₹4.100
L&T shares are currently trading at ₹3,580 each. The stock is down nearly 10% from its 52-week high of ₹3,948.60 each reached on June 3, 2024.
“L&T shares have recently formed an ascending triangle showing a reversal from the support level, accompanied by significant trading volume. There are expectations of further bullish momentum, with potential targets in ₹3.925 and ₹4.100,” Sumeet Bagadia saying.
Moreover, the L&T share price is trading above the crucial exponential moving averages (EMAs), including the 20-day and 50-day EMAs, indicating strong bullish momentum and suggesting the possibility of sustained upside price movement. The relative strength index (RSI) is at 46, indicating an uptrend and confirming an increase in buying momentum, it added.
According to Bagadia, a prudent strategy involves considering buying opportunities during market declines at levels of ₹3,540.
“In summary, given the technical analysis and current market conditions, L&T stock appears to offer a promising buying opportunity for those targeting a price of ₹3.925 and ₹4,100, subject to the implementation of prudent risk management measures,” Bagadia said.
At 2:35 pm, L&T shares were trading 0.16 per cent lower. ₹3,586.50 each in the BSE.
Disclaimer: The opinions and recommendations expressed above are those of individual analysts or brokerage firms, and not those of Mint. We recommend that investors consult with certified experts before making any investment decisions.
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