LTTS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.0

🧠 Swing Trade Analysis: LTTS (L&T Technology Services Ltd.)

LTTS presents a technically strong and fundamentally sound swing trade setup, backed by high profitability and solid trend indicators. However, valuation and recent earnings softness suggest a disciplined approach.

✅ Strengths

Technical Momentum: Price ₹4,395 is above 50-DMA (₹4,259) and approaching 200-DMA (₹4,521), indicating a potential breakout.

MACD (8.08): Positive — confirms bullish momentum.

RSI (65.0): Bullish but not overbought — room for upside.

Profitability: ROCE (27.9%) and ROE (21.7%) are excellent — strong operational efficiency.

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

Debt-to-Equity: Very low at 0.09 — financially sound.

Dividend Yield: 1.25% — adds holding incentive.

⚠️ Weaknesses

Valuation: P/E of 38.3 vs industry average of 32.2 and PEG ratio of 4.14 — indicates overvaluation.

Earnings Softness: PAT dipped slightly from ₹314 Cr to ₹308 Cr — signals stagnation.

FII Sentiment: Declined (-0.34%) — mildly bearish.

52w Index (30.1%): Trading in lower third of yearly range — sentiment still recovering.

🎯 Optimal Entry Price

Buy Zone: ₹4,300–₹4,350

Near 50-DMA support; wait for RSI to cross 67 and MACD to remain positive.

🚪 Exit Strategy (If Holding)

Target Exit: ₹4,600–₹4,650

Near 200-DMA and short-term resistance; exit if RSI crosses 70 or MACD flattens.

Stop Loss: ₹4,200

Below this level, trend support weakens.

⚖️ Verdict

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

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