Hadrien Mendonca has a credible track record. When the Nifty was at 6,000, he had correctly predicted that the “Nifty was on its way to the summit”. Today, the Nifty is at 7,318. Similarly, he had correctly predicted that the Bank Nifty would surge and cross the first target of 14,650 and the second target of 15,500. The Bank Nifty is now at 15,084 and the first target has been achieved.
Now, the object of his attention is Larsen & Toubro Limited, the Blue Chip infra behemoth.
In a technical research report dated 27.05.2014 (pdf), Hadrien Mendonca points out that L&T is witnessing a “Multi-Year Ascending Triangle Break-Out”. He explains that L&T was trapped between two trend‐lines; one was the “Upward Sloping Trend‐line” and the other was the “Horizontal Resistance Line” that represents boundaries of the “Ascending Triangle Pattern”.
He adds that the stock has recently hit fresh life‐time highs. Technical indicators and oscillators also provide clearer picture on potential up ‐moves, pointing to a possible strong appreciation in the medium term. The breach has been accompanied with strong up‐tick in traded volumes, adding credence to the breakout, he emphasizes.
Hadrien Mendonca recommends a buy of the stock for a potential target of Rs. 1,864 in the medium term. He also advises a strict stop loss of Rs. 1,390.