L&T gives a breakout, Infra index follows

When the entire market was buoyant throughout the day on Monday, the Infrastructure sector was not an exception and it followed the trend. Nifty Infra index outperformed the benchmark indices and gained 0.9 per cent. Nifty Infra index gave a rounding bottom breakout at 3,495 levels with justifiable volumes and 14-period RSI positive crossover at momentum levels. The index had attempted a breakout at 3,500 on April 19, but resisted and consolidated thereafter.

Larsen & Toubro which holds 32 per cent weightage in the index kind of mirrored the index movement. It closed as much as 1.9 per cent up, pulling the index upwards on Monday. After hitting an all-time high at 1,470 on February 1, the stock fell 14.3 per cent to 1,260 and hit a kind of triple bottom during March 2018. Hereafter, it bounced back forming a Rounding bottom pattern and hit above its prior resistance at 1,372 on April 19. The stock corrected up to 61.8 per cent retracement of the prior rally, as if for a pull back. Recently, the stock bounced back for two consecutive days retesting 1,372. The bounce was supported by reasonable volumes and RSI positive crossover. The stock may head towards all-time high levels in the upcoming trading sessions.