A TECHNICAL VIEW ON LIC OF INDIA LTD-8.9.2023

 

LIC OF INDIA LTD

FINANCIAL DATA

SECTOR: -- Largest insurance company in India. 

                            MAR-2023 Qtr          JUNE-2023 Qtr

Sales:-               131761.11cr               98362.75cr                       

Net Profit:-        13427.81cr                  9543.71cr

E.P.S:-                        21.23                          15.09   

Equity: - 6325 cr,Face Value:-10,Book Value:-72.20, Price/Book:-9.42,Dividend Yield:-.44%,Share Holding Pattern:- Promoters—96.50% , FII & DII- .90% & Public---2.60%, Market Cap:-429214cr.

TTM (E.P.S):-71.55(+858.22% YOY), TTM (PE):-9.48, Sector (PE):--19.30

Data Source: -  www.moneycontol.com. 

All-Time High:--918.95 made on 17.5.2022.

All-Time Low: -- 530.05 made on 29.3.2023. 

Open-680.20--High-686.80--Low-674.60—Close-676.10 on 7.9.2023. 

Support: 667.90/655.10/650/643.05/639.70/620.05/614.25/593/588/582.35/566/555.10/543/530.05.

Resistance:679/684.90/706.60/714.50/724.40/732/746/754.25/801/841.40/918.95. 

(Bold and underlined figures are most important) 

Technical setup is looking good and it is likely to move up in coming days, but may take some time to pick up momentum. The worst price for the stock seems to be in the range of 643---622---611 as of now. The current price of the stock is very near to upper band of the said range; therefore it seems that it is the time to accumulate the stock now or on decline but not below 622 with a stop loss of 600 with a long term view for decent gains. It is important to mention here that as long as it holds 622 on the closing basis chances of up move will always be alive. 

Moving up from here its stiff resistance points would be at 685---709----725---754.25---770---827---841, it will gain strength if it moves above 685 and sustains on the closing basis, if it moves above 709 and sustain on the closing then the possibility of crossing critical resistance of 754.25 will increase, sustained break above 754.25 may have an accelerated up move and finally if it moves above 841 and sustain on the closing basis then it can retest its all-time high of 918.95 or may go beyond it also. 

In view of the above observation it seems good for the long term investment as downside risk looks limited at this point of time. 

NOTE: - It is a technical assessment of the stock as of now, the technical interpretation changes with the price movement and time, therefore it has to be reviewed at regular intervals, furthermore  investors are advised to look into fundamental, financial details of the company because that too keeps on changing and last but not the least management perception for the future of the company before taking investment decision.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view. 

Kindly note that make your cost your stop loss in favorable  trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS. 

Note: Price stated here are of spot market. 

Contact me for strategic guidance to enter and exit trade.

 

Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.