Larsen & Toubro

Whether we take it as C4 or as 4th arm of the Contracting Triangle,the upmove from 970 has to take the form of a zigzag and lets have a close look at this upmove from 970:

Please notice the trendline resistance,over bought RSI and then bearish cross-over in MACD--a perfect combination for Jackpot trade again----
EOD 02-08-2012

Or as per Hour Chart one can wait for lower trendline break to go short with Stop loss at nearest high and target below 1300

EOD 10.8.12
As mentioned elsewhere also, L & T broke the above shown wedge and did show initial signs of breakdown but recovered smartly to surprise and sustained at upper range:

Now on daily charts the channels appear as below:

Further  detailed updates on L & T are available on these link:
Jackpot Trade No.1
Jackpot Trade No. 3

22-09-2012 Update:
And to cut the long story short now we are at following state of labels:

Upmove in L & T at higher degree --in seen as Zig-zag ABC wherein

 A=969-1532=563

B=1532-1102=430

C=A means 1665 max C=1.618*A=2015

But C can either be a simple 5 wave Impulse or a 5 w Diagonal.

As a 5 wave Impulse either 3rd extended or 5th extended

If 3rd extended then:

C1=1106-1442=336

C2=1442-1309(as flat)

C3(extended)=minimum1.62*336=545+1309=1853

If 5th extended then

C1=1106-1442=336

C2=1442-1309

C3=1309-1597=288  must continue till 1650 to allow EW rule of 3rd not being shortest, but to reach 1650 looks Improbable because within C3:

(i)=1309-1387=78

(ii)=1387-1356=31

(iii)=1356-1597=241[300% of (i)]

(iv)=1597-1510=87

(v)=1510-1650*=140(180% of (i)]

And both (iii) and (v) should not be extended.

So we are left with two Probabilities only:

Either C as a 5w Impulse with extended 3rd

OR

C as a 5w Diagonal.

In case of C playing out as 5w Impulse(with 3rd extended), our labels would appear as:

C1=1106-1442=336

C2=1442-1309(as Flat)

C3=1309 upwards in progress as a 5w Impulse wherein

(i)=1309-1597* nearing its end

(ii) may retrace 80%=

And if  C  be seen as 5w Diagonal our labels would appear as:

C1=1106-1442=336

C2=1442-1309(as Flat)

C3=1309-1597* nearing its end

C4 downwards to start now

Weekly update 28-09-2012:
All things remain same.
The Impulse from 1309 upwards (which was mentioned last week as 1309-1597* nearing its end) has tested 1620 and I would still be calling it "nearing its end" as the top has not been confirmed so far:
Last week I was thinking of this Impulse as follows:

(i)=1309-1387=78

(ii)=1387-1356=31

(iii)=1356-1597=241[300% of (i)]

(iv)=1597-1510=87
(v)=1510-above 1597 but below 1637
Either this (v) is playing out as a diagonal or we may have to label it differently as:

(i)=1309-1387=78

(ii)=1387-1356=31

(iii)=1356-1617=261
(iv)=1617-1551=66
(v)=1551-1619=68

Negative divergence,which was apparent in Hour charts only till previous weekend,is now apparent in Daily charts as well.
Weekly pivot is at 1589. As we start trading below it,weakness would get manifested.