Buy Larsen & Toubro in range of Rs. 910-930,
Target: Rs. 1080
Stop Loss: Rs. 855
Time frame: Three months
Derivatives & Quantitative Outlook
L&T has remained largely range bound between Rs. 860 and Rs. 1020 in the last five months despite broader market volatility. The stock seems to be moving towards the higher band of the range. Moreover, with the stock moving to its two-month highs with noteworthy delivery activity, a round of short covering is expected.
L&T has started the current series with low open interest. Since then, it has been witnessing accumulation near the support level of Rs. 900. With continued Put writing in 900 and 860 strikes, we expect downside risk to be limited. On the other hand, Call OI of 920 and 940 strike is already witnessing closure of positions suggesting upsides in the stock. These positions are expected to aid it to break the option range on the higher side.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_LarsenToubro_Oct20.pdf
Shares of LARSEN & TOUBRO LTD. was last trading in BSE at Rs.917.3 as compared to the previous close of Rs. 903. The total number of shares traded during the day was 666965 in over 31631 trades.
The stock hit an intraday high of Rs. 935.6 and intraday low of 912.75. The net turnover during the day was Rs. 617112097.