LT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | LT | Market Cap | 5,24,505 Cr. | Current Price | 3,814 ₹ | High / Low | 4,195 ₹ |
| Stock P/E | 46.4 | Book Value | 494 ₹ | Dividend Yield | 0.89 % | ROCE | 18.5 % |
| ROE | 17.1 % | Face Value | 2.00 ₹ | DMA 50 | 3,940 ₹ | DMA 200 | 3,777 ₹ |
| Chg in FII Hold | 0.58 % | Chg in DII Hold | -0.35 % | PAT Qtr | 3,471 Cr. | PAT Prev Qtr | 1,212 Cr. |
| RSI | 40.4 | MACD | -52.8 | Volume | 28,49,543 | Avg Vol 1Wk | 29,55,790 |
| Low price | 2,965 ₹ | High price | 4,195 ₹ | PEG Ratio | 2.73 | Debt to equity | 0.27 |
| 52w Index | 69.0 % | Qtr Profit Var | 44.4 % | EPS | 45.3 ₹ | Industry PE | 16.9 |
📊 Chart Patterns & Trend: The stock is trading at ₹3,814, below its 50 DMA (₹3,940) but above the 200 DMA (₹3,777), reflecting short-term weakness but long-term support. Price action is consolidating near support levels, with resistance around ₹3,940–₹4,000.
📈 Moving Averages: Current price below 50 DMA indicates short-term bearishness, while being above 200 DMA shows long-term strength. Sustaining above ₹3,940 would confirm bullish reversal.
📉 RSI: At 40.4, RSI is in the lower neutral zone, suggesting weak momentum but not oversold. A move above 50 would indicate strengthening momentum.
📉 MACD: Negative at -52.8, showing bearish divergence. Trend remains weak until MACD narrows toward zero.
📊 Bollinger Bands: Price is near the lower band, suggesting limited downside and potential mean reversion toward ₹3,900–₹4,000.
📊 Volume Trends: Current volume (28.5 Lakh) is slightly below average weekly volume (29.5 Lakh), showing reduced participation and lack of strong breakout signals.
🎯 Entry Zone: ₹3,780–₹3,820 (near support and 200 DMA).
🎯 Exit Zone: ₹3,940–₹4,050 (near resistance and 50 DMA).
📌 Trend Status: Consolidating with mild bearish bias. A reversal may occur if RSI rebounds and price sustains above ₹3,940–₹4,000.
Positive
- Strong ROCE (18.5%) and ROE (17.1%) highlight efficient capital use.
- Dividend yield of 0.89% provides steady income for investors.
- EPS at ₹45.3 remains robust compared to peers.
- Quarterly PAT surged to ₹3,471 Cr from ₹1,212 Cr, showing strong earnings growth.
- FII holdings increased (+0.58%), reflecting foreign investor confidence.
Limitation
- Stock P/E (46.4) is significantly higher than industry PE (16.9), indicating overvaluation.
- Price trading below 50 DMA confirms weak short-term momentum.
- PEG ratio (2.73) suggests valuation is stretched relative to growth.
Company Negative News
- DII holdings decreased (-0.35%), showing weaker domestic institutional support.
- MACD remains negative, indicating bearish divergence.
Company Positive News
- Quarterly profit growth (+44.4%) indicates strong operational performance.
- FII holdings increased (+0.58%), showing foreign investor confidence.
Industry
- Industry PE at 16.9 is much lower than the stock’s P/E, suggesting sector trades at more reasonable valuations.
- LT trades at a premium but maintains strong fundamentals with high ROCE and ROE.
Conclusion
⚖️ LT is consolidating near support levels, trading below its 50 DMA but above the 200 DMA. Entry near ₹3,780–₹3,820 offers favorable risk-reward, while exits around ₹3,940–₹4,050 align with resistance. Sustained buying and a move above ₹3,940–₹4,000 would confirm reversal toward bullish momentum, while failure to hold support could extend bearish consolidation.