LODHA - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📊 Chart Patterns & Trend: LODHA is trading below both its 50 DMA (1,148 ₹) and 200 DMA (1,220 ₹), showing weakness. Price action suggests the stock is in a reversal phase after failing to sustain near its 52-week high (1,534 ₹).

📈 Moving Averages: Current price (1,091 ₹) is below both 50 DMA and 200 DMA, confirming bearish sentiment. Resistance lies around 1,150–1,220 ₹.

📉 RSI: At 30.9, RSI indicates oversold conditions, suggesting potential for a short-term bounce but overall weak momentum.

📉 MACD: Negative at -29.0, confirming bearish momentum and lack of strong buying signals.

📊 Bollinger Bands: Price is near the lower band, signaling oversold territory and possible short-term recovery if volume improves.

📉 Volume Trends: Current volume (4,72,861) is significantly below average weekly volume (11,73,496), showing reduced participation and weak conviction in recent moves.

🎯 Entry Zone: 1,050–1,080 ₹ (near support levels).

🎯 Exit Zone: 1,150–1,220 ₹ (resistance at DMA levels).

⚡ Momentum: Weak, oversold with potential short-term bounce but overall bearish bias.

Positive

• EPS at 22.9 ₹ provides earnings visibility.
• ROCE (14.6%) and ROE (13.2%) indicate moderate efficiency and profitability.
• DII holdings increased (+0.54%), showing domestic institutional support.
• Dividend yield of 0.40% provides shareholder returns.

Limitation

• Stock trading below both 50 DMA and 200 DMA, signaling weakness.
• RSI at 30.9 shows oversold but also weak momentum.
• MACD negative, confirming bearish trend continuation.
• Quarterly PAT declined sharply (336 Cr vs 644 Cr), showing earnings pressure.
• High P/E ratio (47.7) compared to industry average (33.7), suggesting premium valuation.

Company Negative News

• Quarterly PAT decline (-14.7%) indicates near-term earnings weakness.
• FII stake reduction (-0.78%) shows declining foreign investor confidence.

Company Positive News

• DII stake increase (+0.54%) shows confidence from domestic institutions.
• EPS strength and moderate ROCE/ROE highlight operational resilience.

Industry

• Industry PE at 33.7 is lower than LODHA’s PE (47.7), showing premium valuation.
• Real estate sector demand remains cyclical but supported by urbanization and housing growth.

Conclusion

⚖️ LODHA is currently in a reversal phase with oversold signals. Short-term momentum is weak, with entry opportunities near 1,050–1,080 ₹ and resistance around 1,150–1,220 ₹. Fundamentally supported by EPS and DII confidence, but technically cautious due to weak PAT growth, reduced FII interest, and premium valuation. Best suited for long-term investors; traders should wait for reversal confirmation before entry.