LICI - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.2

📈 LIC shows strong fundamentals, technical support, and attractive valuation, making it a solid swing trade candidate.

🎯 Optimal Entry Price: ₹895–₹910

🚪 Exit Target (if already holding): ₹945–₹965

🔍 Positive

• 📈 ROCE of 53.4% and ROE of 46.0% reflect exceptional capital efficiency.
• 📈 PEG ratio of 0.09 suggests deep undervaluation relative to growth.
• 📈 Price above both 50 DMA and 200 DMA (₹896 and ₹890), confirming technical support.
• 📈 MACD at 3.47 signals bullish momentum.
• 📈 Volume above weekly average (21.0L vs 18.2L), indicating rising interest.
• 📈 EPS of ₹77.0 supports strong earnings visibility.

⚠️ Limitation

• 📉 P/E of 11.8 is low compared to industry average (82.5), but may reflect market skepticism.
• 📉 RSI at 53.6 is neutral, not yet in breakout territory.
• 📉 Dividend yield of 1.32% is modest for income-focused investors.

📉 Company Negative News

• 📉 PAT declined from ₹19,013 Cr to ₹10,987 Cr QoQ, indicating margin compression.
• 📉 DII holding declined by 0.02%, showing slight domestic caution.

📈 Company Positive News

• 📈 FII holding increased by 0.02%, reflecting foreign investor confidence.
• 📈 PAT still grew 5.02% YoY, showing long-term earnings resilience.

🛡️ Industry

• 🛡️ Insurance and financial services benefit from rising penetration, regulatory support, and long-term savings demand.
• 📉 Risks include policy lapses, interest rate volatility, and competition from private insurers.

✅ Conclusion

• 📈 LIC is a strong swing trade candidate with bullish technicals, deep valuation, and resilient fundamentals.
• 🎯 Entry near ₹895–₹910 with exit around ₹945–₹965 is recommended for short-term traders.
• 📊 Long-term investors should monitor premium growth and product mix for sustained upside.

I can also compare LIC with SBI Life or HDFC Life to help you identify stronger swing setups in the insurance space.