LTIM - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.3

📊 Chart Patterns & Trend: LTIM is trading well above both its 50 DMA (5,898 ₹) and 200 DMA (5,496 ₹), showing strong bullish momentum. Price action suggests the stock is in a trending phase near its 52-week high (6,380 ₹).

📈 Moving Averages: Current price (6,178 ₹) is comfortably above both 50 DMA and 200 DMA, confirming an uptrend. Resistance lies around 6,300–6,380 ₹.

📉 RSI: At 63.5, RSI is in bullish territory but not yet overbought, suggesting healthy momentum.

📈 MACD: Strongly positive at 126, 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 (3,35,576) is higher than average weekly volume (2,65,235), showing strong participation and conviction in the rally.

🎯 Entry Zone: 6,000–6,100 ₹ (near 50 DMA support).

🎯 Exit Zone: 6,300–6,380 ₹ (near resistance and 52-week high).

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

Positive

• Quarterly PAT growth (1,386 Cr vs 1,297 Cr) shows steady earnings improvement.
• EPS at 162 ₹ highlights robust earnings power.
• Strong ROCE (27.6%) and ROE (21.6%) indicate excellent efficiency and profitability.
• DII holdings increased (+0.47%), showing domestic institutional confidence.
• Low debt-to-equity ratio (0.10) ensures financial stability.

Limitation

• High PEG ratio (8.75) suggests expensive growth-adjusted valuation.
• FII holdings decreased (-0.22%), reflecting reduced foreign investor confidence.
• Stock P/E (38.1) is higher than industry average (26.4), indicating premium valuation.

Company Negative News

• FII stake reduction (-0.22%) shows declining foreign investor interest.
• Premium valuation compared to industry peers may limit upside potential.

Company Positive News

• Quarterly PAT growth of 13.6% highlights strong operational performance.
• DII stake increase (+0.47%) shows confidence from domestic institutions.
• Strong ROCE and ROE metrics support long-term fundamentals.

Industry

• Industry PE at 26.4 is lower than LTIM’s PE (38.1), showing premium valuation.
• IT services sector demand remains strong, supported by digital transformation and global outsourcing trends.

Conclusion

⚖️ LTIM is currently in a strong uptrend, trading above key moving averages with bullish MACD and healthy RSI. Entry opportunities lie near 6,000–6,100 ₹, with resistance around 6,300–6,380 ₹. Fundamentally strong with profit growth, ROCE/ROE efficiency, and low debt, but technically cautious due to premium valuation and reduced FII interest. Best suited for medium-to-long term investors; traders can capitalize on momentum while monitoring resistance levels.