Larsen & Tourbo Ltd. (L&T)
On technical point of view:
The stock breached the neck line after formation of Head & Shoulder pattern. The pattern started formation in March 11 and completed on September 11. As per technical theory, the stock has been drag into a bear phase after breaking Rs 1525. Since the chart displays the pattern clearly in its weekly parameter, it is likely that the bear phase of the stock will remain for a medium term and the target will be near Rs 1200.
On the other hand, if the stock crosses Rs 1550 and remains for a week above the price, then it will be assumed that bear will harbour in the fear of bull. Looking to the present circumstance, this scenario is remote.
After reaching its target of Rs 1200, we will review the paradigm of the stock at that time.