Here’s why Osho Krishan is bullish on Larsen & Toubro, Balkrishna Inds

BUY BALKRISHNA INDUSTRIES LTD

TARGET: Rs 2,700

STOP LOSS: Rs 2,440

BALKRISIND has seen firm consolidation at 21-DEMA on the daily chart that also coincides with its previous swing highs and the mean of the Bollinger band suggesting it to be strong support for the counter. On the oscillator front, 14-period RSI is on verge of positive crossover suggesting an early sign for the counter to surge higher. The parabolic SAR affirms the bullish stance for the counter as it is placed well below the price. From a risk-reward point of view, it is recommended to accumulate the stock from short to medium-term time frame.

BUY LARSEN & TOUBRO LTD

TARGET: Rs 1,810

STOP LOSS: Rs 1,640

LT is in a secular uptrend and is currently hovering above all its major exponential moving averages on the daily time frame indicating inherent strength. At present, the stock is placed near the mean of the Bollinger band (20, 2) that historically has provided strong support to the counter. On technical parameters, 14-period RSI is also placed at its support zone suggesting resurgence in short term. Also, the stock is placed at a lucrative zone with a strong risk-reward ratio.

Osho Krishan is senior manager – Equity Research at Anand Rathi Shares & Stock Brokers. Views are personal.

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