The buyback proposal announced by L&T for its shareholders was declined by Sebi on Saturday on concerns of ratio not being complying with the Companies Act and Sebi norms. On the other hand, Sun Pharma urged the markets regulator to examine the role of some media houses with respect to the reports of fresh whistleblower complaints.
L&T: The chart formation on the weekly scale of L&T indicates a consolidation phase for the stock. It trades in the horizontal range identifying upper levels / trend line to act as resistance and lower levels / trend line to act as support levels.
The stock is trading in the range of Rs 1,450/60 – Rs 1,190/80 from February last year. As it scales above Rs 1,400 level, profit booking can be seen as per the chart. The similar scenario was witnessed when the stock fell below Rs 1,200 level. Any dip around and below the said level will trigger buying momentum. CLICK HERE TO VIEW CHART
Although, the stock is trading below its 200-day moving average (DMA) on the daily chart, the weakness needs to build more selling pressure to enter in bearish phase, chart suggests. The technical indicator RSI (Relative Strength Index) which determines the strength, is trading with negative crossover heading towards oversold range of 30 level, currently placed at 32 level. The Stochastic is rising above the oversold region, trading at 31.50 level. The MACD (moving average convergence and divergence) is trading below the zero line.
Sun Pharma: As mentioned in the previous article, the stock has breaached the monthly support of Rs 415. The current recovery of 3 per cent towards Rs 400 indicates stock retesting the resistance zone of Rs 415 – Rs 445 levels. CLICK HERE TO VIEW CHART
Going forward, it needs to trade above Rs 400 consistently to regain the losing strength indicated by RSI (Relative Strength Index), which has reversed dipping below oversold territory of 30 levels. The other indicators MACD, ADX (average directional index) and Stochastic have either made negative crossover or are in the process to make one. The overall trend remains uncertain; however, stability above Rs 400 level may add buying strength to the stock, chart suggests.