Sizzling Stocks - Larsen & Toubro (Rs 1,452.2)

Yoganand D. | Updated on September 24, 2011 Published on September 24, 2011

The stock plummeted 9.8 per cent in the previous week, breaching its significant long-term support at Rs 1,500. Ever since its last November's peak of Rs 2,212, the stock has been on an intermediate-term downtrend. After encountering resistance at Rs 1,850 in late July this year, the stock has been on a medium-term downtrend. It is trading well below its 21 and 50-day moving averages.

Both the daily and weekly indicators are featuring in the bearish zone signalling downward momentum. Next key support for the stock is in the band between Rs 1,370 and Rs 1,400. Emphatic drop below this band can drag the stock down to Rs 1,300 in the medium-term. Key resistances are pegged at Rs 1,500, Rs 1,550 and Rs 1,650.

ABB (Rs 753.9)

ABB nose-dived 10 per cent in the last week. The stock's significant long-term resistance in the range between Rs 875 and Rs 900 has consistently halted the stock from moving higher since May this year. The stock reversed downwards after testing this range in mid-September.

The stock has retraced 50 per cent of its prior up move and is testing key long-term support at Rs 750. A decisive breach of this support will pull the stock down to Rs 700 or even to Rs 650 in the ensuing months. Significant resistance for the stock are positioned at Rs 800 and then at Rs 870.

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