LICI - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 3.6

Here’s a detailed technical analysis of Life Insurance Corporation of India (LICI)

📊 Trend Overview

Current Trend: 🔄 Consolidating with mild bullish bias

Price is hovering around both the 50-DMA (₹890) and 200-DMA (₹887), indicating indecision and consolidation.

The 52-week index at 52.6% shows the stock is mid-range, recovering from its low of ₹715 but still below its high of ₹1,049.

RSI at 53.4 is neutral, suggesting lack of strong momentum.

MACD at -3.20 is slightly negative, hinting at a recent loss of momentum.

📈 Moving Averages

50-DMA: ₹890 — Immediate support/resistance pivot.

200-DMA: ₹887 — Long-term support.

Price Action: Current price of ₹891 is marginally above both DMAs, signaling a potential breakout if momentum builds.

📉 Momentum Indicators

RSI (14-day): 53.4 — Neutral zone, no strong directional bias.

MACD: -3.20 — Bearish crossover, momentum softening.

Volume: 6.7 lakh vs 1-week avg of 8.8 lakh — Below average, indicating low conviction.

📊 Bollinger Bands

Price likely near middle band — low volatility.

No breakout or squeeze pattern detected, but setup favors continuation if volume improves.

📌 Support & Resistance Zones

Level Price (₹) Commentary

Support 1 875 Minor swing support

Support 2 850 Previous consolidation base

Resistance 1 910 Minor resistance zone

Resistance 2 950–1,000 Trendline and psychological barrier

🎯 Entry & Exit Zones

Optimal Entry: ₹875–₹885 — On pullback near support.

Exit Zone: ₹910–₹950 — Resistance zone for profit booking.

🔍 Short-Term Signals

Momentum: Weak — MACD bearish, RSI neutral.

Breakout Potential: Low to moderate — Needs volume surge and MACD reversal.

Bias: Neutral to cautiously bullish — Consolidation phase with potential for breakout.

🧭 Summary

LICI is currently consolidating, with price action tightly aligned to its moving averages and momentum indicators showing indecision. Traders may consider entering near ₹875–₹885 and targeting ₹910–₹950 for exits. A breakout above ₹910 with volume and MACD reversal could confirm trend continuation toward ₹1,000+ levels.

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