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LUPIN - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.7

Last Updated Time : 02 Feb 26, 09:51 am

Technical Rating: 3.7

Stock Code LUPIN Market Cap 97,651 Cr. Current Price 2,135 ₹ High / Low 2,228 ₹
Stock P/E 18.3 Book Value 596 ₹ Dividend Yield 0.56 % ROCE 21.9 %
ROE 17.8 % Face Value 2.00 ₹ DMA 50 2,111 ₹ DMA 200 2,030 ₹
Chg in FII Hold 1.00 % Chg in DII Hold -0.98 % PAT Qtr 869 Cr. PAT Prev Qtr 2,128 Cr.
RSI 49.2 MACD 8.08 Volume 4,66,859 Avg Vol 1Wk 8,66,339
Low price 1,774 ₹ High price 2,228 ₹ PEG Ratio 0.11 Debt to equity 0.04
52w Index 79.5 % Qtr Profit Var 7.55 % EPS 126 ₹ Industry PE 29.0

📊 Chart Patterns & Trend: Lupin is trading at 2,135 ₹, slightly above its 50 DMA (2,111 ₹) and 200 DMA (2,030 ₹). This indicates a trending phase with bullish bias. The stock is near its 52-week high (2,228 ₹), reflecting strong sentiment and upward momentum.

📈 RSI: At 49.2, RSI is neutral, suggesting balanced momentum with room for further upside.

📉 MACD: Positive at 8.08, confirming bullish momentum and potential continuation of the uptrend.

📊 Bollinger Bands: Price is near the upper band, indicating strong momentum but also caution for possible short-term pullback.

📊 Volume Trends: Current volume (4,66,859) is lower than average weekly volume (8,66,339), showing reduced participation but still supportive of the trend.

🎯 Entry Zone: 2,080–2,120 ₹ (near 50 DMA support).

🎯 Exit Zone: 2,200–2,230 ₹ (near resistance and 52-week high).


Positive

  • Market cap of 97,651 Cr. reflects strong industry presence.
  • Stock P/E of 18.3 is attractive compared to industry PE of 29.0.
  • ROCE (21.9%) and ROE (17.8%) highlight strong capital efficiency.
  • Dividend yield of 0.56% provides modest income return.
  • Debt-to-equity ratio at 0.04 shows near debt-free balance sheet.
  • FII holdings increased by 1.00%, showing strong foreign investor confidence.

Limitation

  • Sequential decline in PAT (869 Cr. vs 2,128 Cr.).
  • DII holdings decreased (-0.98%), showing reduced domestic institutional confidence.
  • Volume participation is lower than average, reducing conviction in price action.
  • PEG ratio of 0.11 suggests limited earnings growth relative to valuation.

Company Negative News

  • Sharp sequential decline in quarterly PAT.
  • DII stake reduction highlights declining domestic investor confidence.

Company Positive News

  • EPS at 126 ₹ reflects strong earnings power.
  • Quarterly profit variance of 7.55% indicates year-on-year improvement.
  • FII stake increase shows strong global investor interest.

Industry

  • Pharma sector trading at industry PE of 29.0, making Lupin undervalued at P/E of 18.3.
  • Sector outlook remains positive with defensive demand and global healthcare expansion.

Conclusion

⚖️ Lupin is in a bullish trending phase with supportive RSI and positive MACD. Entry near 2,080–2,120 ₹ offers margin of safety, while exits around 2,200–2,230 ₹ provide profit-taking opportunities. Long-term investors may find value due to strong fundamentals, low P/E, and high ROE/ROCE, while short-term traders can exploit momentum near resistance levels.

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