LTF - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.3

📈 LTF is in a strong uptrend, trading at its 52-week high with bullish momentum and favorable technical indicators.

📊 Technical Analysis

• Trend: The stock is trending upward, having reached its 52-week high of ₹280, with strong bullish sentiment.
• Moving Averages: Price is well above both 50 DMA (₹248) and 200 DMA (₹204), confirming a strong uptrend.
• RSI (66.9): Approaching overbought territory, indicating strong momentum but suggesting caution for new entries.
• MACD (6.64): Positive and rising, reinforcing bullish momentum.
• Bollinger Bands: Price is near the upper band, indicating strength but also potential for short-term consolidation.
• Volume: Current volume (47.8L) is below 1-week average (107.7L), suggesting a slight divergence between price and participation.

🎯 Entry & Exit Zones

• Support Zone: ₹265 – ₹275 (recent breakout zone and psychological support)
• Resistance Zone: ₹280 – ₹290 (new highs with potential for profit booking)
• Optimal Entry: ₹270 – ₹275 (on pullback with RSI holding above 60)
• Exit Target: ₹290 – ₹300 (short-term breakout extension)

✅ Positive

• Strong ROE (10.8%) and improving PAT (₹728 Cr. vs ₹694 Cr.) reflect solid financial performance.
• PEG ratio of 0.20 suggests significant growth at a reasonable valuation.
• Price is at 52-week high with bullish confirmation across indicators.
• FII and DII holdings increased, indicating institutional confidence.

⚠️ Limitation

• RSI nearing overbought levels may lead to short-term consolidation or profit booking.
• Volume is declining despite price strength, suggesting caution for momentum traders.
• Debt-to-equity ratio of 3.76 is high, typical for NBFCs but still a structural risk.

📉 Company Negative News

• No significant negative news, though high debt levels remain a structural concern.

📈 Company Positive News

• Quarterly profit growth and consistent EPS performance support bullish outlook.
• Institutional accumulation and breakout to new highs reflect strong investor sentiment.

🏦 Industry

• Industry P/E is 22.3, slightly lower than LTF’s 26.2, suggesting moderate overvaluation.
• NBFC sector is cyclical and influenced by interest rates, liquidity, and credit demand.

🧾 Conclusion

• LTF 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 ₹270 with a target of ₹300, maintaining stop-loss below ₹265.