Technical Chart Check:Larsen and Tubro,ICICI bank and Infosys

By | October 20, 2011

Trading is not a sprint; it is boxing. The market will beat you up, screw with your head, and do anything it can to defeat you. But when the bell sounds at the end of the twelfth round, you must be standing in the ring in order to win.

Keep it simple. Simple time-tested methods that are well executed will beat fancy complicated method every time.

Nifty is at a crucial junction of  crossing 5169. I have shared the analysis of 3 heavy Weight age Index stocks LT, Infy and ICICI Bank. If these 3 stocks gives a breaout Nifty will cross the crucial hurdle of 5169.

It 4 time Nifty is trying to break 5170 and this time it looks technically strong as still trading above some crucial support levels.

Larsen and Tubro

 

 


LT will be coming out of its results on 21 October. Stock is trading near its crucial resistance of 1400-1404 band. Ita having trendline resistane as shown in chart.

20 DMA@1402 and 23.6% Fibo ratio @1403.

So range of 1400-1404 is very crucial for LT.Close above it will reduce the effect of short term bearishness.

If results are good stock will rally till 1464-1514 levels and a bad results will make the stock to touch its recent lows of 1305 levels.

Buy above 1404 Tgt 1419,1450, 1464 and 1514

Sell below 1387 Tgt 1369,1338,1321 and 1302

 

Infosys Limited

Infy delivered a good earnings and stock gave a breakout above 2600 filled the gap and now comfortably trading above 2700.If one observe the Daily charts closely Infy is now taing support at higher end of gap area ie.2680-2700 Levels.Today will be 6 day trading above 2700 which make stock technically strong and ripe for covering another gap which is at 2850-2888 Levels.

Buy above 2735 Tgt  2764,2782 and 2823 Above 2850 it will cover the Gap till 2888

Sell below 2687 Tgt 2673,2647 and 2620

ICICI Bank

ICICI bank another Index heavy weight is facing resistance at 907-910 range.

910 was the low from where stock rallied in September.

Support becoming Resistance in ICICI bank.

Break above 910 will induce a rally till 969 in short term. Failure to trade and close above 910 will take it back to 860 levels again.

Buy above 910 TGt 925,942 and 967

Sell below 900 Tgt 888,880,872 and 860

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