Top trending stock: Larsen & Toubro Infotech

The stock of LTI is extremely bullish today and has gained nearly 2%.

Larsen & Toubro Infotech is engaged in computer programming, consultancy, and related IT activities. With a market capital of about Rs 1,00,000 crore, it is one of the strongest company in its sector. The stock has come to the attention of traders due to its ongoing bullishness.

The stock of LTI is extremely bullish today and has gained nearly 2%. After hitting a low of Rs 5580, which also happens to be its 200-DMA, the stock has attracted strong buying interest at lower levels. The stock has shot up nearly 10% in just five trading sessions. On the technical chart, it has formed a strong bullish body with a shadow on the lower side. It is trading at a day’s high and has crossed above its prior swing high of Rs 6073.30. With today’s price action, the stock has recorded above-average volume, which happens to be greater than 10-day and 30-day average volume and indicates larger participation in the stock.

Along with its strong price structure, the technical parameters also point towards strong upside momentum. The 14-period daily RSI has risen steadily above 51, indicating an improved strength in the stock. Moreover, the MACD line is above the signal line and indicates an upmove. The Elder Impulse System also gives a buy signal. The stock has surged above its 20-DMA with heavy volumes and looks bullish for short term. The other momentum oscillators and technical parameters also suggest the good performance of the stock.

As per the technicals and price action, the stock is expected to test its prior swing high of Rs 6432.30 and thereafter Rs 6500, which happens to be its 50-DMA in the short to medium term. Moreover, the stock has remained resilient to market changes and has reported nearly flat returns in the past one month despite bad sentiment in the market. Thus, the stock is quite attractive among investors and medium-term traders.