Trading Strategies for Cochin Shipyard, Larsen & Toubro by Mehul Kothari

According to the technical analyst from Anand Rathi, Cochin Shipyard can rally to Rs 390, whereas Larsen & Toubro can slip to Rs 1,800-level.

BUY

Cochin Shipyard

Buy Near: Rs 350

Target: Rs 390

Stop Loss: Rs 330

The stock of Cochin Shipyard has confirmed a major breakout from the multiple resistance level of Rs 346 with decent volumes.

The price action has also take shape of bullish flag breakout. This price action is being witnessed just above the placement of 200-Week Moving Average and indicates sheer strength.

Thus, we advise traders to buy the stock near Rs 350 for target of Rs 390 in the coming sessions.

SELL

LT (Larsen & Toubro)

Sell Near: Rs 1,890

Target: Rs 1,800

Stop Loss: Rs 1,940

The stock has been in a strong uptrend from Rs 1,430 towards Rs 1,940 mark and entered an overbought zone.

The momentum oscillator on the daily scale are hinting towards a corrective move. On the daily scale we are witnessing a bearish Engulfing candlestick pattern.

Thus, we advise traders to sell the stock on rise near Rs 1,890 for target of Rs 1,800 in the coming sessions.

(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).