Breakout Alert! L&T stock may cross ₹4,000-mark, gain over 11%, hints chart

Technical charts show that the bias at the Larsen & Toubro counter is likely to remain positive as long as the stock trades above ₹3,437 levels.

Larsen & Toubro (L&T) opened with a gap-up, and rallied to a high of ₹3,653 - up 4.5 per cent in Wednesday's intra-day trade as the stock reacted to the Q1 results.  Yesterday, too, the stock gained over 2 per cent, after the company said it secured an ultra-mega order for its hydrocarbon offshore business from a client in the Middle East. As per L&T's order categorisation, an ultra-mega order means a contract in excess of ₹15,000 crore.  On the earnings front, L&T's net profit rose 29.8 per cent year-on-year (YoY) to ₹3,617.2 crore in Q1FY26, as against ₹2,785.72 crore in the corresponding period a year ago. Revenue from operations increased by 15.5 per cent YoY to ₹63,678.92 crore.  Most brokerages have reiterated a 'Buy' rating on the L&T stock, and also have increased the expected target price post the company's Q1 earnings. READ MORE  Technically, the Larsen & Toubro stock has given a breakout on the daily chart, and is seen quoting above the short-term moving averages after almost a month. Technical charts suggest that the L&T stock can potentially gain another 11 per cent from here, and surpass the ₹4,000-mark. 

Technical analysis on L&T stock.

Larsen & Toubro (L&T)

Current Price: ₹3,642  Likely Target: ₹4,056  Upside Potential: 11.4%  Support: ₹3,585; ₹3,521; ₹3,437  Resistance: ₹3,760; ₹3,870; ₹3,965  Apart from trading above the short-term moving averages, the 20-Day Moving Average (20-DMA) and the 50-DMA, which stand at ₹3,521 and ₹3,585 levels. Key momentum oscillators like the 14-day Relative Strength Index (RSI), Stochastic Slow and the Moving Average Convergence-Divergence (MACD) too have shown a positive divergence on the daily chart. 

 

  Technical chart shows that the overall bias for L&T stock is likely to remain favourable as long as the stock holds above ₹3,450 levels; with near support likely around the short-term averages.  On the upside, the stock can potentially rally towards ₹4,056 levels. Intermediate resistance for the stock can be anticipated around ₹3,760, ₹3,870 and ₹3,965 levels; hints the long-term chart.