Weak signals! Larsen & Toubro stock can crack another 16%; find out why

L&T share price outlook: L&T is trading below the 20-MMA, and now testing support at 100-WMA. Chart also shows formation of 'Death Cross'; trade below this key moving average can trigger a fresh fall.

Larsen & Toubro (L&T) stock has cracked nearly 19 per cent from its all-time high of Rs 3,963 hit in December 2024. In the process, the stock has broken below key moving averages on the daily time-frame, and has made lower highs and lower lows in the last two weeks.  On the weekly scale, the stock at present is seen testing support around the 100-WMA (Weekly Moving Average), which stands at Rs 3,218. Whereas, in the case of monthly scale, Larsen & Toubro stock is seen trading below its 20-MMA (Monthly Moving Average) for the first time since November 2020.  That apart, the 50-DMA of L&T stock today dipped below the long-term 200-DMA; this pattern implies formation of a 'Death Cross', which in technical terms is a bearish development. Hence, the stock could witness further downside in the near-term.  Here's how the L&T stock is placed on the charts, and the key levels to watch out for.  Larsen & Toubro  Current Price: Rs 3,287  Downside Risk: 16.3%  Support: Rs 3,218; Rs 3,120; Rs 3,020  Resistance: Rs 3,300; Rs 3,425  As per the weekly chart, a weekly close below Rs 3,300 shall mark the end of the bull-run that started in mid-July 2022. Similarly, a monthly close below Rs 3,425, shall indicate weakness on the longer-term chart. CLICK HERE FOR THE CHART  Given these two negative developments, coupled with the formation of a 'Death Cross' pattern; the bias at the counter is likely to remain tepid.  For now, the key support remains the 100-WMA at Rs 3,218. Break and sustained trade below the same, can potentially trigger a slide towards the monthly super trend line support, which stands at Rs 2,750 - this implies a downside risk of 16.3 per cent from present levels. Interim support for the stock can be expected around Rs 3,120, Rs 3,020 levels.  In order to negate the negative set-up, L&T stock will need to close above Rs 3,300 on a weekly basis, and also above Rs 3,425 on a monthly basis.