LICI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | LICI | Market Cap | 5,04,672 Cr. | Current Price | 798 ₹ | High / Low | 980 ₹ |
| Stock P/E | 9.52 | Book Value | 223 ₹ | Dividend Yield | 1.50 % | ROCE | 53.4 % |
| ROE | 46.0 % | Face Value | 10.0 ₹ | DMA 50 | 811 ₹ | DMA 200 | 848 ₹ |
| Chg in FII Hold | 0.11 % | Chg in DII Hold | -0.06 % | PAT Qtr | 12,958 Cr. | PAT Prev Qtr | 10,053 Cr. |
| RSI | 47.0 | MACD | 4.58 | Volume | 12,88,616 | Avg Vol 1Wk | 13,16,307 |
| Low price | 722 ₹ | High price | 980 ₹ | PEG Ratio | 0.07 | Debt to equity | 0.00 |
| 52w Index | 29.6 % | Qtr Profit Var | 17.2 % | EPS | 83.8 ₹ | Industry PE | 70.0 |
📊 LIC (LICI) is trading below its 50 DMA (₹811) and 200 DMA (₹848), showing short-term weakness despite strong fundamentals. RSI at 47.0 indicates mild bearish momentum, while MACD (4.58) suggests limited bullish divergence. Bollinger Bands point to consolidation with downside risk. Current volume (12.9 lakh) is slightly below the 1-week average (13.1 lakh), reflecting reduced participation.
💡 Optimal Entry: ₹780–₹795 (near support zone)
🚪 Exit if Holding: Profit-taking zone around ₹820–₹835; Stop-loss below ₹770
📈 Trend Status: Consolidating with weak momentum
✅ Positive
- Strong fundamentals: ROE (46.0%) and ROCE (53.4%)
- Sequential PAT growth (₹10,053 Cr → ₹12,958 Cr)
- Low P/E (9.52 vs industry 70.0) indicates attractive valuation
- Zero debt-to-equity ratio
- FII holdings increased (+0.11%)
⚠️ Limitation
- Trading below both 50 DMA and 200 DMA
- RSI below 50 reflects weak momentum
- 52-week index at 29.6% shows underperformance
- DII holdings declined (-0.06%)
📉 Company Negative News
- Stock underperforming relative to 52-week highs
- Weak short-term technical signals despite strong fundamentals
📈 Company Positive News
- Strong quarterly PAT growth (+17.2%)
- EPS at ₹83.8 supports earnings visibility
- FII inflows indicate foreign investor confidence
🏭 Industry
- Insurance sector trading at industry P/E of 70.0
- LICI remains undervalued compared to peers
🔎 Conclusion
LICI is consolidating below key moving averages with weak momentum signals. Entry near ₹780–₹795 offers a favorable risk-reward setup, while exits around ₹820–₹835 are advisable. Strong fundamentals and attractive valuation support long-term potential, but short-term technical weakness suggests cautious positioning.