Quant Pick - Larsen & Toubro - ICICI Direct

Time frame: Three months

Derivatives & Quantitative Outlook

The current rally of the index has seen broader market participation where metal and pharma stocks have significantly outperformed. In the past couple of weeks underperforming sectors like BFSI saw a decent recovery whereas infrastructure stocks have continued to underperform the index. With the recent recovery in cement stocks, we expect buying to be witnessed in the infrastructure sector as well. Heavyweight like Larsen & Toubro (L&T), which have remained largely range bound in the last couple of weeks, may find fresh momentum in coming weeks.

The open interest in the stock declined sharply in the current month amid short covering. Since March, the stock has witnessed a down trend with short additions. These positions have begun to be covered. We now expect momentum to be seen along with covering of short positions in the coming sessions.

For details, click on the link below: Link to the report

Shares of LARSEN & TOUBRO LTD. was last trading in BSE at Rs.1418.55 as compared to the previous close of Rs. 1409.65. The total number of shares traded during the day was 154748 in over 5431 trades.

The stock hit an intraday high of Rs. 1424.9 and intraday low of 1407.75. The net turnover during the day was Rs. 218995845.

Source : Equity Bulls

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