LICI - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.8

🛡️ Swing Trade Analysis: LICI (Life Insurance Corporation of India)

LICI offers a value-driven swing trade setup with excellent fundamentals and strong capital efficiency. However, technical indicators suggest limited momentum, making it a cautious candidate for short-term trading.

✅ Strengths

Valuation: P/E of 11.6 vs industry average of 73.5 and PEG ratio of 0.09 — deeply undervalued.

Profitability: ROCE (53.4%) and ROE (46.0%) are exceptional — highly efficient operations.

Dividend Yield: 1.35% — adds holding incentive.

Debt-to-Equity: 0.00 — zero leverage, excellent financial health.

EPS (₹77.0): Strong earnings base.

⚠️ Weaknesses

Technical Setup: Price ₹891 is flat against 50-DMA (₹890) and 200-DMA (₹887) — lacks directional bias.

MACD (-3.20): Negative — indicates weak momentum.

RSI (53.4): Neutral — no strong trend signal.

Volume: Below weekly average — reduced short-term interest.

Earnings Decline: PAT dropped from ₹19,013 Cr to ₹10,987 Cr — signals short-term softness.

Institutional Sentiment: FII (+0.01%) and DII (+0.10%) changes are minimal — neutral stance.

52w Index (52.6%): Trading in mid-range — sentiment is stable but not bullish.

🎯 Optimal Entry Price

Buy Zone: ₹870–₹885

Slight pullback below DMA levels offers better risk-reward; wait for MACD to flatten and RSI to rise above 55.

🚪 Exit Strategy (If Holding)

Target Exit: ₹940–₹960

Near short-term resistance; exit if RSI crosses 65 or MACD turns positive.

Stop Loss: ₹850

Below this level, trend support weakens.

⚖️ Verdict

LICI is a moderate swing trade candidate, ideal for value-focused traders. While fundamentals are strong, technical momentum needs to improve before a confident entry. Tight risk control is essential.

Edit in a page