Stock to buy: Sumeet Bagadia recommends this largecap stock as his Independence Day Pick

Stock to buy: Larsen & Toubro (L&T) shares traded flat on Monday, while the largecap stock has given no returns in the past one month. L&T shares gained just a little over 9 per cent in three months and have risen only 1.6 per cent year-to-date (YTD).

However, analysts believe the L&T stock is technically poised to see a decent upward momentum. Sumeet Bagadia, Executive Director at Choice Broking, has recommended the index heavyweight Larsen & Toubro shares as his Independence Day Pick.

Based on the technical analysis, Bagadia suggests L&T as his stock to buy and advises adding more on dips.

Here’s Sumeet Bagadia’s Independence Day stock recommendation:

Buy L&T at ₹3,592 | Target Price: ₹3,925- ₹4,100

L&T shares are currently trading at ₹3,580 apiece. The stock is down nearly 10 per cent from its 52-week high of ₹3,948.60 apiece on June 3, 2024.

“L&T stock has recently formed an ascending triangle showing reversal from support level, accompanied by significant trading volume. There are expectations of further upward momentum, with potential targets at ₹3,925 and ₹4,100,” Sumeet Bagadia said.

Moreover, the L&T share price is trading above crucial Exponential Moving Averages (EMAs), including the 20-day and 50-day, indicating a robust bullish momentum and suggesting the possibility of sustained upward price movement. The Relative Strength Index (RSI) is at 46, indicating an upward trend and confirming an increase in buying momentum, he added.

According to Bagadia, a prudent strategy involves considering buying opportunities during market dips at levels of ₹3,540.

“In summary, given the technical analysis and current market conditions, L&T stock appears to offer a promising buying opportunity for those aiming for a target price of ₹3,925 and ₹4,100, contingent upon the implementation of prudent risk management measures,” Bagadia said.

At 2:35 pm, L&T shares were trading 0.16 per cent lower at ₹3,586.50 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.