ICICIdirect has issued a technical Buy call on Larsen & Toubro. The stock broker recommends buying stock in the range of Rs 1,548-1,520 with target Rs 1,770.

Commenting on investment rationale, stock broker said,"The stock attracted fresh demand precisely near the major breakout area of Rs 1440 (2008-10 highs). It highlights the change of polarity principle, which says that a significant price resistance, once conquered by bulls, reverses its role and acts as a support for future price movement."

"We believe the stock has concluded its healthy consolidation phase and is set to resume its upward momentum. Therefore, it offers a good reward/risk setup from a medium-term perspective.  Among oscillators, the weekly 14 period RSI is seen in a rising trajectory forming higher high and higher low. The recent coo-off in prices has brought the RSI near its own rising support trend line and indicates resumption of upward momentum in the stock", it said.

"We believe the stock is set to embark upon its next up move within the broader bull phase and is likely to head towards Rs 1,780 being the 123.6% Fibonacci extension of the August rally (Rs 1,405 to 1,632) projected from the current week's low of Rs 1500", it added.

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