LICHSGFIN - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.8

📉 LIC Housing Finance Ltd (LICHSGFIN) Swing Trade Analysis

LICHSGFIN shows strong fundamentals but is currently in a technical downtrend, making it a cautious swing trade candidate. The stock is trading below key moving averages and lacks momentum, though its valuation and earnings growth offer upside potential if a reversal occurs.

✅ Strengths

Valuation

P/E: 6.05 vs Industry PE of 20 — deeply undervalued

PEG Ratio: 0.18 — excellent value relative to growth

Book Value: ₹661 vs CMP ₹598 — trading below book

Profitability

ROE: 16.0% and ROCE: 8.93% — solid returns

EPS: ₹98.9 — strong earnings base

Qtr Profit Var: +27.0% — robust quarterly growth

Volume: 25.9L vs Avg 19L — above-average interest

Dividend Yield: 1.50% — decent income support

⚠️ Weaknesses

Technical Indicators

RSI: 42.6 — weak momentum

MACD: -0.39 — bearish crossover

Price below both 50 DMA (₹607) and 200 DMA (₹600) — confirms downtrend

52w Index: 36.9% — significant underperformance

FII Holding: ↓ 1.30% — foreign investors exiting

Debt-to-Equity: 7.45 — very high leverage typical of housing finance companies

🎯 Optimal Entry Price

Entry Zone: ₹605–₹610

Wait for price to cross above 50 DMA with RSI > 50 and MACD turning positive

Confirm with bullish candlestick pattern or breakout above ₹603.30

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🚪 Exit Strategy (If Already Holding)

Short-Term Target: ₹617–₹628

Based on resistance zones and recent bullish forecasts

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Stop Loss: ₹584

Below recent support and psychological level

📌 Summary

LICHSGFIN is fundamentally strong and undervalued, but technical indicators suggest caution. It’s best suited for swing trading only after a confirmed breakout above ₹605. If already holding, consider exiting near ₹628 or trail stop loss to ₹584.

You can monitor live chart setups and technical signals for LICHSGFIN on TradingView

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dailybulls.in

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in.tradingview.com

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