LT-TECHNOLOGY-SERVICES

L&T Technology Services – BUY

Our Technical View

1. The IT company plummeted over 50% while the price action was trading in its stage 4.

2. Following a 52 week low at 2937 the price action entered into an elongated consolidation phase.

3. The lateral trend determines gradual accumulation by professionals.

4. The buyers within the trading range were actuated on 27th April, 2023. It recorded the highest volume for the year. With this the price action also saw a burst in its momentum.

5. The relative performance compared to Nifty also witnessed significant improvement after the tepid move in April which was a positive sign.

6. The price action is trading in a tight and narrow range of ~6% i.e. 4550 points. The buyers and sellers are attempting to get into equilibrium at this point of time ahead of the consolidation and stage 2 breakout.

7. The price action also offers a favourable risk to reward opportunity and thus we reiterate a buy on LTTS for the target of 4310 and stop loss at 3727.

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