Trade Spotlight: What should investors do with L&T, L&T Technology Services and Zensar? – Moneycontrol.com

Stocks that were in focus in yesterday's session include L&T which rose over 4 percent to hit a 52-week high, L&T Technology Services gained over 19 percent, and Zensar Technologies Ltd saw gains of over 4 percent.

July 16, 2021 / 08:43 AM IST

It was a strong day for the bulls on July 15 as the Indian market hit a fresh record high amid positive global cues. The Nifty50 hit a high of 15,952 while the Sensex rose to a record of 53,266.

The S&P BSE Sensex settled 254 points higher at 53,158 while the Nifty50 closed with gains of 70 points at 15,924. The S&P BSE Midcap index was up 0.3 percent, and the S&P BSE Small-cap index closed with gains of 0.43 percent.

Sectorally, buying was seen in Realty, Capital Goods, IT, Industrials, and banks while profit-taking was seen in oil & gas, telecom, public sector, and energy.

Stocks that were in focus include L&T which rose over 4 percent to hit a 52-week high, L&T Technology Services gained over 19 percent, and Zensar Technologies Ltd saw gains of over 4 percent. All stocks hit their fresh 52-week high on Thursday.

Here's what Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:

L&T:

The stock rallied over 4 percent on July 15. During the session, the stock opened with a gap-up and quickly surpassed Rs 1,585 resistance-mark with strong volume activity.

Post breakout, the entire day, it was trading above the resistance level which is broadly positive for it.

In the short-term time frame, the stock has formed a strong price-volume breakout pattern. The texture of the pattern suggests that the breakout action will continue in the near future if the stock succeeds to trade above Rs 1,560 level.

For swing traders, Rs 1,560 should be the sacrosanct level. If the stock trades above the same, we can expect an uptrend continuation wave up to Rs 1,680-Rs 1,700.

L&T Technology Services:

On July 15, the stock registered an all-time high of Rs 3,493. So far this month, the stock has rallied nearly 21 percent. On Thursday, after a strong gap-up opening, the stock rallied from Rs 3,116 to Rs 3,344.

On the daily and weekly charts, the stock has formed a breakout continuation pattern which is grossly positive for the L&T Tech.

As long as the stock is trading above Rs 3,300, and the uptrend texture is likely to continue up to Rs 3,500-Rs 3,575, and on the flip side, dismissal of Rs 3,300 could possibly trigger a quick short-term correction up to Rs 3,200-Rs 3,100.

Zensar Technologies:

After a strong uptrend - the rally from Rs 300 to Rs 345, the stock was hovering between Rs 345 to Rs 330 price range.

However, on Thursday, the scrip not only surpassed its previous resistance of Rs 345 but comfortably managed to sustain above the same.

The sharp 5 percent intraday price volume rally clearly suggests that the stock is in strong hands and is likely to continue the uptrend texture in the near future.

Unless it trades below Rs 330, positional traders retain an optimistic stance and look for an upside of Rs 385-Rs 405. Fresh buying can be considered now and on dips if any between Rs 355 and 345 levels with a stop loss below Rs 330.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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Trade Spotlight: What should investors do with L&T, L&T Technology Services and Zensar? - Moneycontrol.com