LTF - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.6

💼 Swing Trade Analysis: LTF (L&T Finance Holdings Ltd.)

LTF is currently in a strong uptrend with high momentum and institutional support, but overbought technicals and elevated debt levels suggest caution for new entries.

✅ Strengths

Technical Momentum: Price ₹247 is well above both 50-DMA (₹217) and 200-DMA (₹185), confirming a strong bullish trend.

MACD (8.71): Strongly positive — indicates continued upward momentum.

Volume: Significantly above weekly average — confirms strong market interest.

Valuation: P/E of 23.5 is in line with industry average (24.0), and PEG ratio of 0.18 suggests undervaluation relative to growth.

Profitability: ROE (10.8%) is decent, and PAT has grown from ₹631 Cr to ₹694 Cr — steady earnings.

Institutional Sentiment: FII (+0.71%) and DII (+0.82%) holdings increased — bullish signal.

⚠️ Weaknesses

RSI (81.4): Overbought — signals potential for short-term correction.

ROCE (8.70%): Moderate — not ideal for capital efficiency.

Debt-to-Equity: High at 3.65 — typical for NBFCs but adds financial risk.

52w Index (97.1%): Trading near yearly high — limited upside before resistance.

Dividend Yield: 1.11% — modest income incentive.

🎯 Optimal Entry Price

Buy Zone: ₹225–₹230

Wait for RSI to cool below 65 and MACD to stabilize before entering.

🚪 Exit Strategy (If Holding)

Target Exit: ₹250–₹255

Near recent highs; exit if RSI remains above 80 or MACD flattens.

Stop Loss: ₹235

Below this level, trend support weakens.

⚖️ Verdict

LTF is a moderate swing trade candidate, ideal for traders already holding the stock. New entries should wait for a pullback, as current levels reflect overbought conditions and limited near-term upside.

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