L&T up 7% in 2 days, crosses 200-DMA after 4 months; chart flags this alert

Meanwhile, brokerage firm Nomura has retained its 'Buy' rating on Larsen & Toubro post Q4 results; but lowered the target price.

Shares of Larsen & Toubro have extended the post Q4 results rally, and appreciated another 3.6 per cent in trades on Monday. The stock has now gained 7.4 per cent in the last two trading sessions. In the process, the stock is now seen trading above its 200-Day Moving Average (200-DMA) for the first time since January 8, 2025.  In general, the 200-DMA is considered as a key technical indicator in determining the long-term trend of a particular stock or index. Stocks or indices quoting above this key moving average are considered bullish, and vice versa.     Meanwhile, Nomura in L&T's post earnings research call retained its 'Buy' rating on the stock, but lowered the price target from ₹ 3,820 to ₹ 3,670 per share. The overseas brokerage firm believes that L&T's core operational performance was broadly in-line, but the core margin outlook still remains lukewarm.  Read Stock Market Updates Today LIVE  For Q4FY25, L&T reported a consolidated net profit of ₹ 5,497.30 crore, and 10.9 per cent year-on-year (YoY) increase in revenue at ₹ 74,392.28 crore. Earnings before interest, tax, depreciation, and amortisation (Ebitda) was up 13 per cent YoY at ₹ 8,203 crore. The management has guided for sales growth/ core EBITDA margin of 15 per cent YoY / 8.5 per cent in FY26.

Here's a technical outlook on Larsen & Toubro stock.

Larsen & Toubro (L&T)

  Current Price: ₹ 3,565  Upside Potential: 10.8%  Support: ₹ 3,515; ₹ 3,507  Resistance: ₹ 3,630; ₹ 3,660  Apart from crossing the 200-DMA, L&T stock has also given a breakout on the daily scale and is expected to trade with a favourable bias as long as the stock holds above ₹ 3,507 levels. The 200-DMA stands at ₹ 3,515. CLICK HERE FOR THE CHART  On the upside, the stock faces an overhead resistance around ₹ 3,630 - ₹ 3,660 levels. Technical chart suggests that break and sustained trade above this level holds the key for further gains. In the event of a successful breakout, the stock can potentially rally to ₹ 3,950 levels.