RAYMONDLSL - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 2.6

📊 Chart Patterns: RAYMONDLSL is trading below both its 50 DMA (1,133 ₹) and 200 DMA (1,284 ₹). Current price (1,069 ₹) reflects weakness, with the stock trending downward after a steep fall from its 52-week high (2,164 ₹). The broader pattern shows lower highs and lower lows, indicating bearish bias.

📈 Moving Averages: Price < 50 DMA and < 200 DMA → bearish alignment, confirming weakness in both short-term and long-term trends.

📉 RSI: 35.4 → near oversold territory, suggesting potential rebound but overall weak momentum.

📉 MACD: -20.6 → strong bearish crossover, confirming downward momentum.

📊 Bollinger Bands: Price near lower band, indicating oversold conditions but also risk of further downside.

📊 Volume Trends: Current volume (1,41,509) is slightly above 1-week average (1,30,476) → mild selling pressure, showing distribution rather than accumulation.

📍 Support Levels: 1,050 ₹, 1,000 ₹, and strong base near 860 ₹ (52-week low).

📍 Resistance Levels: 1,133 ₹ (DMA 50), 1,284 ₹ (DMA 200), and 1,350 ₹.

🔎 Trend: The stock is reversing downward with strong bearish signals. A breakdown below 1,050 ₹ could trigger further decline, while a rebound above 1,133–1,284 ₹ may signal short-term recovery.

Positive

• 📈 PAT turned positive at 68.6 Cr. compared to a loss of –1.65 Cr. in the previous quarter.
• 📊 EPS at 8.58 ₹ supports valuation strength.
• 📊 Debt-to-equity ratio at 0.22 indicates low leverage.
• 📊 FII holdings increased (+0.19%), showing marginal foreign investor confidence.

Limitation

• ⚠️ Price trading near lower end of 52-week range (16.0%).
• ⚠️ Very high P/E ratio (113) compared to industry PE (19.1) → extreme overvaluation risk.
• ⚠️ Weak ROE (0.50%) and ROCE (2.10%) → poor capital efficiency.
• ⚠️ PEG ratio (3.07) suggests expensive growth expectations.

Company Negative News

• 📉 DII holdings declined (–0.37%), showing reduced domestic investor confidence.
• 📉 Quarterly profit variation (–11.4%) highlights operational challenges despite positive PAT.
• 📉 Technical indicators (RSI weak, MACD strongly negative) confirm bearish momentum.

Company Positive News

• 📈 PAT recovery from loss to profit indicates operational improvement.
• 📊 Low debt-to-equity ratio provides financial stability.
• 📊 Marginal increase in foreign institutional participation.

Industry

• 👔 Textile and lifestyle sector PE at 19.1, much lower than RAYMONDLSL’s PE (113), suggesting overvaluation relative to peers.
• 📊 Industry supported by consumer demand cycles but facing margin pressures.

Conclusion

🔎 RAYMONDLSL is showing strong bearish reversal signals with price below key moving averages, RSI near oversold, and MACD negative. Optimal entry zone lies near 1,050–1,070 ₹ only for high-risk traders looking for technical rebound. Exit/resistance zone is 1,133–1,284 ₹. Long-term investors should remain cautious due to extreme valuation and weak fundamentals, while short-term traders may attempt rebound trades only if price sustains above 1,133 ₹ with volume support.