LINDEINDIA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.8

📊 Chart Patterns & Trend: LINDEINDIA is trading slightly below its 50 DMA (6,012 ₹) and 200 DMA (6,353 ₹), showing weakness. Price action suggests the stock is in a consolidation phase after correcting from highs (7,870 ₹).

📈 Moving Averages: Current price (5,902 ₹) is below both 50 DMA and 200 DMA, indicating resistance around 6,000–6,350 ₹.

📉 RSI: At 49.2, RSI is neutral, suggesting balanced momentum without strong overbought or oversold signals.

📈 MACD: Positive at 10.8, 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 (13,419) is significantly below average weekly volume (24,562), showing reduced participation and weak conviction in recent moves.

🎯 Entry Zone: 5,750–5,850 ₹ (near support levels).

🎯 Exit Zone: 6,000–6,350 ₹ (resistance at DMA levels).

⚡ Momentum: Neutral-to-mild bullish, with consolidation bias.

Positive

• Quarterly PAT growth (169 Cr vs 105 Cr) shows strong earnings improvement (+61.9%).
• EPS at 59.3 ₹ provides earnings visibility.
• ROCE (16.9%) and ROE (12.3%) indicate decent efficiency and profitability.
• DII holdings increased (+0.13%), showing domestic institutional support.
• Low debt-to-equity ratio (0.02) ensures financial stability.

Limitation

• Stock trading below both 50 DMA and 200 DMA, signaling weakness.
• RSI at 49.2 shows neutral momentum, not strongly bullish.
• Volume participation is weak, limiting breakout strength.
• High P/E ratio (99.5) compared to industry average (45.6), indicating overvaluation.
• PEG ratio at 7.22 highlights expensive growth-adjusted valuation.

Company Negative News

• FII holdings decreased (-0.16%), showing reduced foreign investor confidence.
• Stock corrected sharply from 52-week high (7,870 ₹ to 5,902 ₹).

Company Positive News

• Quarterly PAT growth of 61.9% highlights strong operational performance.
• DII stake increase (+0.13%) shows confidence from domestic institutions.
• Low debt levels provide financial stability.

Industry

• Industry PE at 45.6 is much lower than LINDEINDIA’s PE (99.5), showing premium valuation.
• Industrial gases and chemicals sector demand remains strong, supported by manufacturing and infrastructure growth.

Conclusion

⚖️ LINDEINDIA is currently in a consolidation phase with mild bullish bias. Short-term momentum is neutral, with entry opportunities near 5,750–5,850 ₹ and resistance around 6,000–6,350 ₹. Fundamentally supported by PAT growth, ROCE/ROE efficiency, and low debt, but technically cautious due to high valuation, weak volume, and neutral RSI. Best suited for long-term investors; traders should monitor breakout levels before entry.