LT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.1

📈 LT is trending strongly with bullish momentum, trading near its 52-week high and above key moving averages, though overbought RSI and declining volume suggest caution.

📊 Technical Analysis

• Trend: The stock is trending upward, trading above both 50 DMA (₹3,755) and 200 DMA (₹3,598), indicating sustained bullish momentum.
• Moving Averages: Price is well above key averages, confirming strength and trend continuation.
• RSI (77.0): Overbought zone, suggesting strong momentum but risk of short-term pullback.
• MACD (83.4): Strongly positive, reinforcing bullish sentiment and upward momentum.
• Bollinger Bands: Price is near the upper band, indicating strength but also volatility and potential consolidation.
• Volume: Current volume (24.2L) is below 1-week average (36.6L), showing reduced participation despite price strength.

🎯 Entry & Exit Zones

• Support Zone: ₹3,900 – ₹3,950 (recent base and psychological support)
• Resistance Zone: ₹4,050 – ₹4,100 (52-week high and upper Bollinger band)
• Optimal Entry: ₹3,920 – ₹3,980 (on pullback with RSI cooling below 70)
• Exit Target: ₹4,100 – ₹4,150 (short-term breakout zone)

✅ Positive

• Strong ROCE (18.5%) and ROE (17.1%) reflect efficient capital deployment.
• EPS of ₹42.2 and PEG ratio of 3.15 suggest solid earnings growth.
• Low debt-to-equity ratio (0.27) indicates financial stability.
• FII holding increased by 0.15%, showing foreign investor confidence.

⚠️ Limitation

• RSI is in overbought territory, indicating potential for short-term correction.
• Volume is declining despite price strength, suggesting possible exhaustion.
• High P/E (53.5) compared to industry average (22.1) suggests overvaluation.

📉 Company Negative News

• Quarterly PAT dropped significantly from ₹3,485 Cr. to ₹1,212 Cr., a 39% decline.
• DII holding decreased by 0.14%, indicating cautious domestic sentiment.

📈 Company Positive News

• Stock is trading near its 52-week high with strong technical confirmation across indicators.
• Institutional accumulation and bullish MACD signal support continued upside.

🏗️ Industry

• Industry P/E is 22.1, significantly lower than LT’s, suggesting relative overvaluation.
• Infrastructure and engineering sector is cyclical and driven by government spending and capital expenditure trends.

🧾 Conclusion

• LT is currently trending with strong technical indicators and bullish sentiment.
• Short-term traders should monitor RSI and volume for signs of continuation or pullback.
• Long-term investors may consider accumulating on dips near ₹3,950 with a target of ₹4,150, maintaining stop-loss below ₹3,900.