Larsen & Toubro Limited (LT) Stock - Complete Technical Analysis - Oct 04, 2024

Larsen & Toubro Stock Analysis LT Facing Bearish Pressure Key Support & Resistance

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions.

Larsen & Toubro Limited (LT) is showing signs of weakness in the short term, trading at 3493.95, just 10.87% below its 52-week high and 22.33% above its 52-week low. The stock has faced a consistent downtrend over the last few sessions, forming lower highs and lower lows. Today's Spinning Top candlestick indicates indecision in the market, pointing to potential volatility ahead.

On the technical side, the RSI is sitting at 34, indicating the stock is approaching oversold territory, while the Stochastic %K and Williams %R suggest the momentum is heavily bearish. The MACD is also negative, confirming the bearish trend. However, the ADX value of 18 indicates the current trend's strength is weak, which might suggest a possible reversal if buying interest emerges. The Awesome Oscillator and the Momentum indicator further emphasize bearish sentiment.

From a moving averages perspective, the stock is trading below key EMAs, such as the 10, 20, and 50-day averages, indicating bearish pressure. The 200-day EMA sits at 3480.61, serving as a potential support level to watch. If this level holds, there could be a consolidation or potential bounce. On the upside, resistance can be seen near the 3650 zone, aligning with various moving averages and Fibonacci levels.

Given the current setup, traders should be cautious, watching for a break below the 3480 support or signs of reversal around this level. A close above the 3650 resistance might indicate the end of the current downtrend.

In summary, LT is in a bearish phase, and traders should be prepared for further downside or look for a reversal pattern before considering long positions.