L&T Bags Orders Worth Rs 2,000cr - Stock Analysis

Larsen and Toubro traded on the NSE is showing weak trend strength on its stock charts and is likely to dip further in the coming sessions.

LT EOD Chart

EMA crossovers have been bearish since the 24th of May 2013 and so are the Wolfe Wave and Camarilla patterns. Some support is expected on the charts at the 2 - 4 line as shown below, but once penetrated, the stock price could dip to 1331 levels which is the L3 support for June 2013. Further downward targets are 1261 and 1146 respectively, which are however unlikely.

LT Camarilla Levels

Hence traders may short LT futures once the 2 - 4 line is crossed for targets as mentioned above. 

LT Jun 2013 Futures OI

Open Interest and Price analysis of LT futures also depict something similar. As we can see from the images, the open interest has been rising sharply from the last week of May 2013 and the price has been declining since then.

LT Jun 2013 Futures Price

This indicates a build up of short positions on the futures which is a clear signal for further downtrend.

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