L&T FH likely to touch its 200-day SMA
On the daily scale, after consolidation for three weeks, the stock witnessed consolidation breakout with relatively high volumes. After registering 52-week low, the stock gave a sharp bounce of almost 25 per cent and witnessed profit-booking near its previous resistance zone, The profit booking halted near its crucial short term moving average, i.e. 21-day simple moving average.
The 14-period RSI on the daily chart is quoting around 61.83, which suggests an upside momentum. Other indicators and oscillators are also in the bullish territory. The stock has been trading above its crucial short term moving average, i.e. 20-day exponential moving average and it is in a rising mode, which is positive for the stock.
For the short term, the stock has strong support near Rs 128 and strong resistance zone near Rs 158-Rs 162, which coincides with the 200-day simple moving average, The stock is likely to touch this level in the coming weeks.