{"id":230544,"date":"2012-11-08T10:55:46","date_gmt":"2012-11-08T05:25:46","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=230544"},"modified":"2012-11-08T10:55:47","modified_gmt":"2012-11-08T05:25:47","slug":"analysis-lt","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2012\/11\/08\/analysis-lt\/","title":{"rendered":"Analysis: LT"},"content":{"rendered":"

Today\u2019s pick is [stockquote]LT[\/stockquote]. The up-trend in place since December last year was punctuated by a correction in March through May. The stock has since resumed its upward trajectory to reach a 52 week high of 1700 recently. In the last three month period, the stock is up 18%<\/strong> vs. 8% for Nifty. <\/p>\n

\"image\"<\/a> <\/p>\n

Oscillators RSI<\/a> and CMO<\/a> are currently at 57 and 16 and in no man\u2019s land<\/strong>. <\/p>\n

MACD<\/a> line and the signal line are moving very close to each other with the histogram<\/a> levels steady. They are not signaling any directional movement. <\/p>\n

Long term set of GMMA<\/a> lines are fanning out \u2013 which is a bullish for the long term<\/strong>. Due to the recent down-trend in the stock prices the short-term lines are constricting, giving a bearish signal for the short-term<\/strong>. <\/p>\n

Added to all the current technical levels, we can see a divergence in RSI, CMO and MACD levels. The higher highs in the prices are accompanied with the lower highs of the technicals which is a near-term bearish<\/strong> sign for the stock. <\/p>\n

\"image\"<\/a> <\/p>\n

LT\u2019s average correlation<\/a> of 0.75 with the Nifty<\/a> is positive and quite strong. The stock will replicate the movements of Nifty closely. [stockquote]NIFTYBEES[\/stockquote] <\/p>\n

\"image\"<\/a> <\/p>\n

LT had a historical volatility<\/a> in the range of 0.3 to 0.8. Current volatility of the stock should not be sign of panic for the traders. <\/p>\n

In a couple of insider trading instances between 25th<\/sup> through 29th<\/sup> Oct, right around when the stock was making its 52 week highs, the Chairman, Mr. Naik, sold a total of Rs. 10.1 Cr worth of shares. <\/p>\n

Looking at these technicals a short-term hold <\/b>is suggested. Although for the long-term,<\/strong> the GMMA lines are giving a bullish<\/strong> signal for the stock. <\/p>\n

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