LTTS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.2

📉 LTTS is reversing from its highs with weak momentum indicators and declining volume, suggesting short-term caution despite strong long-term fundamentals.

📊 Technical Analysis

• Trend: The stock is reversing from its 52-week high of ₹5,647 and currently trading below both 50 DMA (₹4,205) and 200 DMA (₹4,436), indicating bearish sentiment.
• Moving Averages: Price is below key averages, confirming downward pressure and lack of support from trendlines

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• RSI (43.7): In the lower neutral zone, suggesting weak momentum but not yet oversold

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• MACD (-22.6): Negative crossover, reinforcing bearish momentum

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• Bollinger Bands: Price is near the lower band, indicating oversold conditions and increased volatility

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• Volume: Current volume (40K) is significantly below 1-week average (70K), showing declining interest and reduced participation

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🎯 Entry & Exit Zones

• Support Zone: ₹4,000 – ₹4,050 (recent base and psychological level)
• Resistance Zone: ₹4,200 – ₹4,300 (DMA levels and prior breakdown zone)
• Optimal Entry: ₹4,050 – ₹4,100 (if RSI stabilizes and MACD flattens)
• Exit Target: ₹4,300 – ₹4,450 (short-term recovery zone)

✅ Positive

• Strong ROCE (27.9%) and ROE (21.7%) indicate efficient capital use.
• EPS of ₹116 and PEG ratio of 3.83 suggest growth potential despite high valuation.
• Low debt-to-equity ratio (0.10) reflects a clean balance sheet.
• DII holding increased by 0.27%, showing domestic institutional confidence.

⚠️ Limitation

• Price is trading well below key moving averages, indicating sustained bearish pressure.
• MACD and RSI are weak, showing limited momentum.
• Volume is declining, suggesting lack of strong buying interest.

📉 Company Negative News

• Quarterly PAT remained flat (₹307 Cr. vs ₹308 Cr.), indicating stagnation in earnings growth.
• FII holding decreased by 0.17%, reflecting cautious foreign investor sentiment.

📈 Company Positive News

• Quarterly profit variance of 4.85% YoY shows modest annual growth.
• Strong fundamentals and institutional accumulation support long-term value.

💻 Industry

• Industry P/E is 34.2, slightly lower than LTTS’s 35.5, suggesting fair valuation.
• IT consulting and software sector is growth-oriented and driven by digital transformation and global tech demand.

🧾 Conclusion

• LTTS is currently reversing with weak technical indicators and bearish sentiment.
• Short-term traders should wait for RSI to rise above 50 and MACD to flatten before entering.
• Long-term investors may consider accumulating near ₹4,050 with a target of ₹4,450, maintaining stop-loss below ₹4,000.

Sources

MoneyControl

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