Likhitha Infrastructure Limited (LIKHITHA) Stock - Complete Technical Analysis - Dec 11, 2024

Likhitha Infrastructure Stock Analysis Technical and Fundamental Breakdown NSE Stock Review

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Likhitha Infrastructure Limited (LIKHITHA) has been on an upward trajectory, trading at 391.30, which is significantly above its 52-week low of 230.15. However, it's now 21.34% off its 52-week high, signaling a possible cooling down period. Recent price movements show a bearish engulfing pattern, indicating a short-term reversal risk. The stock opened at 396.00 today, touching a high of 396.90, but closed lower at 391.30, reinforcing the possibility of a pullback.

The RSI at 62.14 suggests that the stock is not in overbought territory yet, but its momentum is decelerating. The Stochastic RSI is showing overbought conditions, reaching 80.62, which further points to a potential consolidation or correction. A quick look at the MACD suggests that the stock has some upside potential, with a possible bullish crossover, but the current price action and bearish engulfing pattern could delay further gains.

For traders, a break below the support around 365-370 could lead to further declines, with S1 support levels providing a cushion. However, the 50-day SMA at 366.0 and the 200-day EMA at 364.39 offer significant support, indicating that the stock could find stability in this range. On the other hand, if the stock manages to hold its ground and move above the 400 level, it may test higher resistance zones. Keep an eye on volatility, as the ATR suggests larger price swings, making it critical to use appropriate stop-loss strategies.

Given the strong ROCE of 32.5% and ROE of 23.6%, the stock has strong fundamentals. However, from a technical perspective, it would be wise to wait for confirmation of the reversal or a breakout before making a fresh entry. Momentum indicators such as the Bull Bear Power and Awesome Oscillator suggest that the bullish momentum is still intact, but this could change if the stock breaks below the critical support levels.