Technically, for L&T (CMP:1677), 1651-1637 is immediate good support zone & below that it may fall to 1619-1600 area. Sustain below 1600, it could fall further 1579-1543-1530 zone. Consecutive closing below 1530, L&T may crash to 1480-1460-1437-1415-1360-1300-1265 zone in the near term under worst bear case scenario.
On the upside, sustain above 1651-1680 zone, immediate target may be 1700-1725 area. Only consecutive closing above 1725, it may target 1765-1800-1825 zone in the short term. Sustain above 1825, L&T may scale up to 1895-1960 in the medium term. In the long term only consecutive closing above 1895, it may scale 2100-2150 (FY:16-17) in the bullish case scenario.
Bottom Line: Technical Trading Levels(Positional)
| SL</>5 | FROM SLR | |||||||||
| L&T | CMP | 1677 | ||||||||
| T1 | T2 | T3 | T4 | T5 | T6 | T7 | SLR | |||
| Strong > | 1650 | 1680 | 1700 | 1725* | 1765 | 1800 | 1825 | 1895 | <1635 | |
| Weak < | 1635 | 1619 | 1600 | 1579* | 1540-30* | 1480 | 1460-37 | 1415-1360 | >1650 | |
L&T has a good run up for the last one month amid above expectations Q4 result. Actually the result was subdued in absolute terms and may be termed as reflection of the slow down on our overall economy & gloomy infrastructure sector, but the company has guided good (above expectations) order book. Also, recent uptick in IIP data is helping the scrip price.
Looking ahead, with the expected thrust in overall economic activity & infrastructure push along with faster implementation of crucial projects and revival of stalled projects in India will help immensely the capital goods sector including L&T and it might be a real reflection of "Modinomics" (Shinning India Growth Story).
As Par quick BG metrics, current median valuation of L&T may be around 1600 and its projected fair value might be around 1750-1920-2050 (FY:16-18) under the current market parameters.
| SCRIP | EPS(TTM) | BV(Act) | P/E(AVG) | LONG TERM | SHORT TERM | MEDIAN VALUE | 200-DEMA | 10-DEMA |
| LT | 61.49 | 361.85 | 25.36 | 1582.11 | 1614.75 | 1598.43 | 1605.16 | 1672.07 |
| LT | 73.8 | 477.44 | 25.36 | 1733.25 | 1769.01 | 1751.13 | 1605.16 | 1672.07 |
| LT | 88.5 | 597.3 | 25.36 | 1898.04 | 1937.20 | 1917.62 | 1605.16 | 1672.07 |
| LT | 100.75 | 745.5 | 25.36 | 2025.15 | 2066.92 | 2046.03 | 1605.16 | 1672.07 |
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