L&T Infotech gives trendline breakout

The stock of Larsen & Toubro Infotech Ltd has given downward sloping trendline breakout on the weekly time frame, along with relatively higher volumes. Additionally, the stock had formed a sizeable bullish candle in the breakout week, which adds strength to the breakout. With this downward sloping trendline breakout, the ADX, which shows the strength of the trend, turned upside and the directional parameter +DI is trading much above the -DI.

The major trend of stock is positive as it is trading above its weekly pivot and short and long term moving averages. The leading indicator RSI is currently quoting at 66.70 and it has also recently given downward sloping trendline breakout. The daily MACD stays bullish as it is trading above the zero line and signal line.

Going ahead, the stock has immediate support in the zone of Rs. 1700-1690 as the 50-day EMA and 100-day EMA is placed in that region, while the major support is placed in the zone of Rs 1660-1650 as it is the confluence of 200-day EMA and the downward sloping trendline support. On the higher side, any sustainable move above the level of Rs 1830 is likely to open up gates for further rally towards the levels of Rs. 1900, followed by Rs 1990.

On Friday, the stock of L&T Infotech closed at Rs. 1789.60, a dip of 0.86 per cent. The stock opened at Rs 1801.95 and hit an intraday high of Rs 1827 and a low of Rs. 1760.05 on the BSE.