LTF - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | LTF | Market Cap | 69,919 Cr. | Current Price | 279 ₹ | High / Low | 329 ₹ |
| Stock P/E | 24.9 | Book Value | 104 ₹ | Dividend Yield | 0.99 % | ROCE | 8.70 % |
| ROE | 10.8 % | Face Value | 10.0 ₹ | DMA 50 | 294 ₹ | DMA 200 | 248 ₹ |
| Chg in FII Hold | 0.26 % | Chg in DII Hold | 1.00 % | PAT Qtr | 751 Cr. | PAT Prev Qtr | 728 Cr. |
| RSI | 35.8 | MACD | -5.15 | Volume | 27,33,817 | Avg Vol 1Wk | 40,58,023 |
| Low price | 131 ₹ | High price | 329 ₹ | PEG Ratio | 0.19 | Debt to equity | 3.76 |
| 52w Index | 74.6 % | Qtr Profit Var | 21.3 % | EPS | 11.1 ₹ | Industry PE | 18.9 |
📊 Chart Patterns & Trend: The stock is trading at ₹279, below its 50 DMA (₹294) but above the 200 DMA (₹248), reflecting short-term weakness but long-term support. Price action is consolidating near support levels around ₹275–₹280, with potential rebound if momentum improves.
📈 Moving Averages: Current price below 50 DMA indicates short-term bearishness, while being above 200 DMA shows long-term strength. Sustaining above ₹294 would confirm bullish reversal.
📉 RSI: At 35.8, RSI is close to oversold territory, suggesting potential for a short-term bounce.
📉 MACD: Negative at -5.15, showing mild bearish divergence. Trend remains cautious until MACD crosses upward.
📊 Bollinger Bands: Price is near the lower band, suggesting limited downside and potential mean reversion toward ₹290–₹300.
📊 Volume Trends: Current volume (27.3 Lakh) is lower than average weekly volume (40.5 Lakh), showing reduced participation and lack of strong breakout signals.
🎯 Entry Zone: ₹270–₹280 (near support and oversold RSI).
🎯 Exit Zone: ₹295–₹310 (near resistance and 50 DMA).
📌 Trend Status: Consolidating with mild bearish bias. A reversal may occur if RSI rebounds and price sustains above ₹294–₹300.
Positive
- PEG ratio of 0.19 suggests undervaluation relative to growth.
- Dividend yield of 0.99% provides steady income for investors.
- Quarterly PAT improved to ₹751 Cr from ₹728 Cr, showing earnings growth.
- DII holdings increased (+1.00%), reflecting strong domestic institutional support.
Limitation
- Stock P/E (24.9) is higher than industry PE (18.9), indicating premium valuation.
- ROCE (8.70%) and ROE (10.8%) are relatively modest compared to sector leaders.
- Debt-to-equity ratio of 3.76 is high, raising leverage concerns.
- Price trading below 50 DMA confirms weak short-term momentum.
Company Negative News
- FII holdings decreased (-0.26%), showing reduced foreign investor confidence.
- Volume activity below average indicates weak investor participation.
Company Positive News
- DII holdings increased (+1.00%), showing strong domestic institutional support.
- Quarterly profit growth (+21.3%) indicates improving fundamentals.
Industry
- Industry PE at 18.9 is lower than the stock’s P/E, suggesting sector trades at more reasonable valuations.
- LTF trades at a premium but shows strong growth potential supported by earnings momentum.
Conclusion
⚖️ LTF is consolidating near support levels with weak short-term momentum but strong long-term structure above the 200 DMA. Entry near ₹270–₹280 offers favorable risk-reward, while exits around ₹295–₹310 align with resistance. Sustained buying and a move above ₹294–₹300 would confirm reversal toward bullish momentum, while failure to hold support could extend bearish consolidation.