HDFCLIFE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | HDFCLIFE | Market Cap | 1,54,279 Cr. | Current Price | 715 ₹ | High / Low | 821 ₹ |
| Stock P/E | 81.6 | Book Value | 81.4 ₹ | Dividend Yield | 0.29 % | ROCE | 6.53 % |
| ROE | 10.8 % | Face Value | 10.0 ₹ | DMA 50 | 747 ₹ | DMA 200 | 742 ₹ |
| Chg in FII Hold | -0.55 % | Chg in DII Hold | 0.64 % | PAT Qtr | 421 Cr. | PAT Prev Qtr | 447 Cr. |
| RSI | 36.8 | MACD | -9.74 | Volume | 10,18,784 | Avg Vol 1Wk | 25,06,402 |
| Low price | 600 ₹ | High price | 821 ₹ | PEG Ratio | 7.35 | Debt to equity | 0.18 |
| 52w Index | 52.2 % | Qtr Profit Var | 1.40 % | EPS | 8.77 ₹ | Industry PE | 80.8 |
📊 Chart & Trend Analysis: HDFCLIFE is trading at ₹715, below both its 50 DMA (₹747) and 200 DMA (₹742), indicating short-term weakness. RSI at 36.8 suggests the stock is nearing oversold territory. MACD at -9.74 confirms bearish momentum. Current volume (10.1L) is significantly lower than the weekly average (25.0L), showing weak participation. Bollinger Bands indicate price drifting towards the lower band, reinforcing bearish consolidation.
📈 Momentum Signals: Short-term momentum is negative, with RSI near oversold and MACD bearish crossover. Weak volume further confirms lack of buying strength.
🎯 Entry Zone: ₹700 – ₹710 (near immediate support)
🚪 Exit Zone: ₹745 – ₹760 (near resistance at 50 DMA)
🔎 Trend Status: Consolidating with bearish bias. Sustained trade below ₹700 could trigger reversal towards ₹670–₹650, while recovery above ₹750 may signal trend reversal to bullish.
Positive
- Strong market capitalization of ₹1,54,279 Cr. ensures stability.
- PEG ratio of 7.35 highlights growth potential despite high valuation.
- Debt-to-equity ratio of 0.18 indicates low leverage risk.
- Increase in DII holding (+0.64%) reflects domestic institutional support.
Limitation
- Stock trading below both 50 DMA and 200 DMA signals weakness.
- High P/E ratio (81.6) compared to industry average (80.8) suggests overvaluation.
- Low ROCE (6.53%) and ROE (10.8%) indicate modest efficiency.
- Weak trading volume reduces conviction in recovery moves.
Company Negative News
- Decline in FII holding (-0.55%) signals reduced foreign investor confidence.
- Quarterly PAT decline (₹447 Cr. to ₹421 Cr.) shows earnings pressure.
Company Positive News
- Quarterly profit variation of 1.40% indicates stability despite minor decline.
- Strong EPS of ₹8.77 reflects consistent earnings generation.
Industry
- Life insurance sector remains resilient with long-term demand drivers.
- Industry P/E at 80.8 highlights premium valuations across the sector.
Conclusion
⚖️ HDFCLIFE is consolidating with a bearish bias. Entry near ₹700–₹710 offers cautious accumulation, while exits near ₹745–₹760 provide short-term profit booking. Strong market position supports long-term holding, but current technical weakness, high valuation, and declining earnings warrant patience for better entry opportunities.
Would you like me to extend this into a peer benchmarking overlay (SBI Life, ICICI Prudential Life, Max Life) so you can compare HDFCLIFE’s relative strength within the insurance basket?