LEMONTREE - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.6

📊 Chart Patterns & Trend: LEMONTREE is trading close to its 50 DMA (161 ₹) and 200 DMA (153 ₹), showing mild consolidation. Price action suggests the stock is in a sideways phase after correcting from highs (181 ₹).

📈 Moving Averages: Current price (160 ₹) is hovering around both 50 DMA and 200 DMA, indicating indecision. Resistance lies around 170–181 ₹.

📉 RSI: At 47.5, RSI is neutral, suggesting balanced momentum without strong overbought or oversold signals.

📈 MACD: Slightly positive at 0.12, showing mild bullish momentum but not strongly trending.

📊 Bollinger Bands: Price is near the mid-band, indicating consolidation with limited volatility expansion.

📉 Volume Trends: Current volume (7,91,454) is below average weekly volume (10,53,373), showing reduced participation and weak conviction in recent moves.

🎯 Entry Zone: 155–160 ₹ (near support levels).

🎯 Exit Zone: 170–181 ₹ (resistance at recent highs).

⚡ Momentum: Neutral, with consolidation and mild bullish bias.

Positive

• Quarterly PAT growth (22.6 Cr vs 20.5 Cr) shows steady earnings improvement (+16.5%).
• EPS at 1.36 ₹ provides earnings visibility.
• ROCE (11.2%) and ROE (8.33%) indicate moderate efficiency and profitability.
• FII holdings increased (+0.12%), showing foreign investor confidence.
• Low debt-to-equity ratio (0.28) ensures financial stability.

Limitation

• Stock trading near both 50 DMA and 200 DMA, signaling indecision.
• RSI at 47.5 shows neutral momentum, not strongly bullish.
• MACD is only marginally positive, indicating weak momentum.
• High P/E ratio (118) compared to industry average (34.1), suggesting overvaluation.
• Volume participation is below average, limiting breakout strength.

Company Negative News

• DII holdings decreased (-0.27%), showing reduced domestic institutional support.
• Premium valuation compared to industry peers may limit upside potential.

Company Positive News

• Quarterly PAT growth of 16.5% highlights operational improvement.
• FII stake increase (+0.12%) shows confidence from foreign institutions.
• Low debt levels provide financial stability.

Industry

• Industry PE at 34.1 is much lower than LEMONTREE’s PE (118), showing premium valuation.
• Hospitality sector demand remains cyclical but supported by tourism recovery and rising occupancy rates.

Conclusion

⚖️ LEMONTREE is currently in a consolidation phase with mild bullish bias. Short-term momentum is neutral, with entry opportunities near 155–160 ₹ and resistance around 170–181 ₹. Fundamentally supported by PAT growth and low debt, but technically cautious due to high valuation, weak volume, and neutral RSI/MACD. Best suited for long-term investors; traders should monitor breakout levels before entry.