LT - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.9

📊 Chart Patterns & Trend: LT is trading above both its 50 DMA (3,949 ₹) and 200 DMA (3,714 ₹), showing bullish momentum. Price action suggests the stock is in a trending phase near its 52-week high (4,140 ₹).

📈 Moving Averages: Current price (4,074 ₹) is comfortably above both 50 DMA and 200 DMA, confirming an uptrend. Resistance lies around 4,120–4,140 ₹.

📉 RSI: At 53.1, RSI is neutral-to-positive, suggesting healthy momentum without being overbought.

📈 MACD: Positive at 25.9, confirming bullish momentum and signaling continuation of the uptrend.

📊 Bollinger Bands: Price is near the upper band, reflecting strong buying interest but also caution for short-term volatility.

📉 Volume Trends: Current volume (12,38,679) is slightly below average weekly volume (14,12,092), showing moderate participation. Sustained higher volumes would strengthen breakout potential.

🎯 Entry Zone: 3,950–4,000 ₹ (near 50 DMA support).

🎯 Exit Zone: 4,120–4,140 ₹ (near resistance and 52-week high).

⚡ Momentum: Strong, with bullish signals and trending behavior.

Positive

• EPS at 42.2 ₹ indicates solid earnings power.
• ROCE (18.5%) and ROE (17.1%) reflect strong efficiency and profitability.
• FII holdings increased (+0.15%), showing foreign investor confidence.
• Stock trading above both 50 DMA and 200 DMA confirms bullish technical strength.

Limitation

• Quarterly PAT dropped sharply (1,212 Cr vs 3,485 Cr), showing earnings pressure.
• RSI at 53.1 is neutral, not strongly bullish.
• Volume participation is slightly below average, limiting breakout strength.
• High P/E ratio (54.7) compared to industry average (18.8), suggesting premium valuation.
• PEG ratio at 3.22 highlights expensive growth-adjusted valuation.

Company Negative News

• Quarterly PAT decline (-39%) indicates near-term earnings weakness.
• DII holdings decreased (-0.14%), showing reduced domestic institutional support.

Company Positive News

• EPS strength and ROCE/ROE efficiency highlight operational resilience.
• FII stake increase (+0.15%) shows confidence from foreign institutions.

Industry

• Industry PE at 18.8 is much lower than LT’s PE (54.7), showing premium valuation.
• Infrastructure and engineering sector demand remains strong, supported by government projects and capex growth.

Conclusion

⚖️ LT is currently in a strong uptrend, trading above key moving averages with bullish MACD and neutral RSI. Entry opportunities lie near 3,950–4,000 ₹, with resistance around 4,120–4,140 ₹. Fundamentally supported by ROCE/ROE efficiency and institutional confidence, but technically cautious due to weak PAT growth and premium valuation. Best suited for medium-to-long term investors; traders can capitalize on momentum while monitoring resistance levels.