We are tracking this stock and were waiting for a signal to enter into this stock , this company is best in its sector with a superb track record and brand pedigree. The stock has been in a very consolidating zone from 1580 to 1670 zone i.e approx 8% volatility in last 60 trading sessions. If you consider the risk adjusted returns on this stock the ratio comes out to be favorable for investors / traders. With a correlation of 50% with Nifty the stock is largely independent of nifty performance and has been providing a superior return in last 7 out of 9 months on monthly returns against the broader market index.
The stock has seen a progressive pattern of accumulation on each correction of over 2% to 5% which is very important for a stock of this size. The stock can see some correction in downside but we are confident of seeing new highs in days ahead.
Stock Name : Larsen & Toubro
Buy Entry zone : Around 1670 , keep a target of 2000+
Time Frame : 3 to 6 months