LT - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 4.1

🏗️ Swing Trade Analysis: LT (Larsen & Toubro Ltd.)

L&T offers a solid swing trade setup with strong technical momentum, robust earnings growth, and institutional support. While valuation is elevated, the trend and fundamentals justify a short-term bullish outlook.

✅ Strengths

Technical Momentum: Price ₹3,686 is above both 50-DMA (₹3,588) and 200-DMA (₹3,529), confirming a bullish trend.

MACD (13.9): Positive — indicates continued upward momentum.

RSI (63.1): Bullish but not overbought — room for further upside.

Profitability: ROCE (18.5%) and ROE (17.1%) are strong — efficient capital deployment.

Earnings Growth: PAT rose from ₹3,145 Cr to ₹3,485 Cr — solid quarterly growth (17.4%).

DII Sentiment: Increased holdings (+0.77%) — supportive institutional signal.

Debt-to-Equity: Low at 0.31 — financially sound.

Dividend Yield: 0.92% — adds holding incentive.

⚠️ Weaknesses

Valuation: P/E of 46.0 vs industry average of 20.6 and PEG ratio of 2.71 — indicates overvaluation.

FII Sentiment: Declined (-0.47%) — mildly bearish.

Volume: Slightly below weekly average — suggests moderate short-term interest.

52w Index (72.2%): Trading in upper range — limited upside before resistance near ₹3,964.

🎯 Optimal Entry Price

Buy Zone: ₹3,600–₹3,630

Near 50-DMA support; wait for RSI to rise above 65 and MACD to remain strong.

🚪 Exit Strategy (If Holding)

Target Exit: ₹3,850–₹3,900

Near short-term resistance; exit if RSI crosses 70 or MACD flattens.

Stop Loss: ₹3,520

Below this level, trend support weakens.

⚖️ Verdict

LT is a strong swing trade candidate, ideal for traders seeking momentum in a fundamentally robust large-cap stock. Entry near support and disciplined exit near resistance can yield favorable short-term returns.

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