LICI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | LICI | Market Cap | 4,97,178 Cr. | Current Price | 786 ₹ | High / Low | 980 ₹ |
| Stock P/E | 9.38 | Book Value | 223 ₹ | Dividend Yield | 1.53 % | ROCE | 53.4 % |
| ROE | 46.0 % | Face Value | 10.0 ₹ | DMA 50 | 837 ₹ | DMA 200 | 865 ₹ |
| Chg in FII Hold | 0.07 % | Chg in DII Hold | -0.02 % | PAT Qtr | 12,958 Cr. | PAT Prev Qtr | 10,053 Cr. |
| RSI | 35.6 | MACD | -19.9 | Volume | 11,89,323 | Avg Vol 1Wk | 10,73,486 |
| Low price | 743 ₹ | High price | 980 ₹ | PEG Ratio | 0.07 | Debt to equity | 0.00 |
| 52w Index | 18.2 % | Qtr Profit Var | 17.2 % | EPS | 83.8 ₹ | Industry PE | 76.2 |
📊 Chart & Trend: LIC trades at ₹786, below both its 50 DMA (₹837) and 200 DMA (₹865). This indicates short-term and medium-term weakness, with the stock struggling to regain momentum after recent declines.
📉 Momentum Indicators: RSI at 35.6 shows the stock is nearing oversold territory, suggesting possible support but no strong reversal yet. MACD at -19.9 confirms bearish momentum. Bollinger Bands suggest price is leaning toward the lower band, with support near ₹760–₹770.
📈 Volume Trends: Current volume (11.9 lakh) is slightly above the 1-week average (10.7 lakh), showing increased activity but mostly on the selling side.
🔑 Entry Zone: ₹760–₹770 (near support and oversold RSI levels).
🚪 Exit Zone: ₹850–₹870 (near resistance and 200 DMA).
📌 Trend Status: The stock is in consolidation with bearish bias, showing weakness across moving averages but potential support emerging near ₹760.
Positive
- Strong quarterly PAT growth (₹10,053 Cr → ₹12,958 Cr).
- EPS at ₹83.8 indicates robust earnings power.
- ROCE (53.4%) and ROE (46%) show excellent efficiency.
- PEG ratio at 0.07 suggests undervaluation relative to growth.
- Dividend yield at 1.53% adds income stability.
Limitation
- Stock P/E at 9.38 is low compared to industry PE of 76.2, reflecting market skepticism.
- Trading below both 50 DMA and 200 DMA, signaling weakness.
- 52-week index at 18.2% shows underperformance relative to broader market.
Company Negative News
- DII holdings decreased (-0.02%), showing reduced domestic institutional interest.
- Stock continues to trade below key moving averages.
Company Positive News
- Sequential PAT growth indicates strong profitability momentum.
- FII stake increased (+0.07%), showing foreign investor confidence.
Industry
- Insurance sector PE at 76.2, much higher than LIC’s valuation.
- Sector rotation favors financials, but LIC trades at a discount to peers.
Conclusion
⚖️ LIC is consolidating with bearish short-term signals, trading below key averages. Entry near ₹760–₹770 offers margin of safety, while exits around ₹850–₹870 provide profit-taking opportunities. Despite weak technicals, strong profitability, efficiency ratios, and undervaluation relative to industry PE suggest long-term resilience.
Would you like me to extend this into a peer benchmarking overlay with SBI Life, HDFC Life, and ICICI Prudential to highlight LIC’s relative valuation and technical strength within the insurance sector?