L&T (A Technical View)

This scrip touched Rs. 190/50 after having a fall of Rs. 55/50 from this rise. This rise has been retracement of the fall from Rs. 282/- to 140/-. It came in three waves. The Ist wave started from Rs. 140 and terminated at Rs.209/-. From Rs. 209/- the IInd wave was formed in three internal wave to complete at Rs. 165/30. From here the IIIrd wave started. It again rose in three internal waves. Ist wave of IIIrd was from Rs. 165/30 to Rs.193/40. IInd wave of IIIrd started from Rs. 193/40 and terminated at Rs. 179/-. And from here the IIIrd wave of shot up shortly to give L&T the high of Rs. 246/-. From this level, L&T began its journey towards south. In the first fall it touched Rs. 224/50 and for sometime kept on moving in between Rs. 246/- and Rs.224/50. This movement created a pattern indication either accumulation or distribution. The moment it got a break out on the lover side distribution was confirmed. As a result with minor waves of rise and fall L&T fell till Rs. 190/50. It seems Ist wave of fall stands completed here and L&T has entered the IInd wave of fall or in other words it is in the process of retracing its fall from Rs. 246/- to Rs. 190/50.

Rakesh Bedi is a Technical Analyst (Stocks & Shares)