LINDEINDIA - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 2.9

📉 LINDEINDIA is reversing from its highs with weak momentum indicators and trading below key moving averages, suggesting bearish sentiment and limited short-term upside.

📊 Technical Analysis

• Trend: The stock is reversing from its 52-week high of ₹8,040 and currently trading below both 50 DMA (₹6,268) and 200 DMA (₹6,527), indicating a bearish phase.
• Moving Averages: Price is well below key averages, confirming downward pressure and lack of support from trendlines.
• RSI (30.4): Near oversold territory, suggesting weak momentum with potential for a technical bounce.
• MACD (-71.8): Deeply negative, reinforcing bearish momentum.
• Bollinger Bands: Price is near the lower band, indicating oversold conditions and increased volatility.
• Volume: Current volume (10K) is slightly above 1-week average (9.8K), showing mild accumulation interest.

🎯 Entry & Exit Zones

• Support Zone: ₹5,800 – ₹5,900 (recent base and psychological level)
• Resistance Zone: ₹6,250 – ₹6,400 (DMA levels and prior breakdown zone)
• Optimal Entry: ₹5,850 – ₹6,000 (if RSI stabilizes and MACD flattens)
• Exit Target: ₹6,300 – ₹6,500 (short-term recovery zone)

✅ Positive

• Strong ROCE (16.9%) and ROE (12.3%) indicate efficient capital use.
• EPS of ₹51.8 and low debt-to-equity ratio (0.01) reflect financial prudence.
• DII holding increased by 0.13%, showing domestic institutional confidence.

⚠️ Limitation

• Price is trading well below key moving averages, indicating sustained bearish pressure.
• MACD and RSI are weak, showing limited momentum.
• High P/E (116) compared to industry average (63.7) suggests overvaluation.

📉 Company Negative News

• Quarterly PAT declined from ₹118 Cr. to ₹105 Cr., a 5.8% drop.
• FII holding decreased by 0.16%, reflecting reduced foreign investor confidence.

📈 Company Positive News

• Stock has rebounded from its 52-week low of ₹5,202, showing some support at lower levels.
• Strong fundamentals and low debt support long-term value despite short-term weakness.

🏭 Industry

• Industry P/E is 63.7, significantly lower than LINDEINDIA’s, suggesting relative overvaluation.
• Industrial gases sector is cyclical and driven by manufacturing demand, infrastructure growth, and energy trends.

🧾 Conclusion

• LINDEINDIA is currently reversing with weak technical indicators and bearish sentiment.
• Short-term traders should wait for RSI to rise above 40 and MACD to flatten before entering.
• Long-term investors may consider accumulating near ₹5,850 with a target of ₹6,500, maintaining stop-loss below ₹5,800.