LT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.5
| Stock Code | LT | Market Cap | 5,56,606 Cr. | Current Price | 4,046 ₹ | High / Low | 4,440 ₹ |
| Stock P/E | 51.5 | Book Value | 542 ₹ | Dividend Yield | 0.94 % | ROCE | 19.3 % |
| ROE | 14.8 % | Face Value | 2.00 ₹ | DMA 50 | 3,947 ₹ | DMA 200 | 3,867 ₹ |
| Chg in FII Hold | -1.28 % | Chg in DII Hold | 0.33 % | PAT Qtr | 4,014 Cr. | PAT Prev Qtr | 3,756 Cr. |
| RSI | 58.2 | MACD | 15.4 | Volume | 30,18,554 | Avg Vol 1Wk | 20,29,708 |
| Low price | 3,288 ₹ | High price | 4,440 ₹ | PEG Ratio | 5.08 | Debt to equity | 0.17 |
| 52w Index | 65.8 % | Qtr Profit Var | 27.6 % | EPS | 45.7 ₹ | Industry PE | 17.1 |
📈 Chart Patterns: LT is trending upward, trading at 4,046 ₹ after rebounding from 3,288 ₹ lows, with resistance near 4,400–4,440 ₹. Trendlines confirm bullish continuation supported by higher lows.
📊 Moving Averages: Current price (4,046 ₹) is above DMA 50 (3,947 ₹) and DMA 200 (3,867 ₹), confirming strong bullish alignment.
📉 RSI: At 58.2, RSI reflects bullish momentum, not yet overbought.
📌 MACD: Positive at 15.4, confirming bullish crossover and trend strength.
📈 Bollinger Bands: Price near upper band, signaling strong buying pressure with potential volatility.
🔎 Volume Trends: Current volume (30.1 lakh) is above average (20.2 lakh), showing strong participation and conviction in the rally.
🎯 Momentum Signals: Bullish bias dominates with price above both DMAs, positive MACD, and strong volume. RSI neutral-to-bullish, leaving scope for continuation.
📍 Entry Zone: 3,950–4,050 ₹ (support near DMA 50).
📍 Exit Zone: 4,350–4,450 ₹ (resistance near 52-week high).
📊 Trend Status: Strongly trending upward with bullish continuation; breakout likely if sustained above 4,400 ₹.
Positive
- Quarterly PAT growth (+27.6%) from ₹3,756 Cr. to ₹4,014 Cr.
- Strong ROCE (19.3%) and ROE (14.8%).
- EPS at ₹45.7 supports earnings strength.
- DII holding increased (+0.33%).
- Dividend yield of 0.94% adds shareholder value.
Limitation
- High P/E (51.5) compared to industry average (17.1).
- PEG ratio at 5.08 indicates expensive growth prospects.
- FII holding reduced (-1.28%).
Company Negative News
- Valuation concerns with premium P/E and PEG ratio.
- FII outflows reduce foreign investor confidence.
Company Positive News
- PAT improved significantly (+27.6%).
- DII inflows supportive of momentum.
- EPS strong at ₹45.7.
- Dividend yield adds investor appeal.
Industry
- Industry PE at 17.1, much lower than LT’s P/E (51.5), showing premium valuation.
- Sector momentum strong with 52-week index at 65.8%.
Conclusion
⚖️ LT is in a strong bullish trend, trading near highs with powerful momentum signals. Entry near 3,950–4,050 ₹ offers favorable positioning, while exits around 4,350–4,450 ₹ capture resistance levels. Strong fundamentals and earnings growth support upside, but premium valuation and FII outflows warrant disciplined risk management.
I can refine this into a short-term breakout setup with tighter stop-loss levels, or expand it into a swing trade plan with holding period guidance and trailing exits.