LICI - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | LICI | Market Cap | 5,05,398 Cr. | Current Price | 799 ₹ | High / Low | 980 ₹ |
| Stock P/E | 9.89 | Book Value | 223 ₹ | Dividend Yield | 1.50 % | ROCE | 53.4 % |
| ROE | 46.0 % | Face Value | 10.0 ₹ | DMA 50 | 846 ₹ | DMA 200 | 874 ₹ |
| Chg in FII Hold | 0.07 % | Chg in DII Hold | -0.02 % | PAT Qtr | 10,053 Cr. | PAT Prev Qtr | 10,987 Cr. |
| RSI | 34.6 | MACD | -11.9 | Volume | 8,93,700 | Avg Vol 1Wk | 7,87,184 |
| Low price | 715 ₹ | High price | 980 ₹ | PEG Ratio | 0.08 | Debt to equity | 0.00 |
| 52w Index | 31.6 % | Qtr Profit Var | 31.9 % | EPS | 80.8 ₹ | Industry PE | 80.8 |
📊 Chart Patterns & Trend: LICI is trading at 799 ₹, below both its 50 DMA (846 ₹) and 200 DMA (874 ₹). This indicates short-term weakness and a bearish consolidation phase. The stock is closer to its 52-week low (715 ₹) than its high (980 ₹), reflecting cautious sentiment.
📈 RSI: At 34.6, RSI is near oversold territory, suggesting potential for a short-term rebound.
📉 MACD: Negative at -11.9, confirming bearish momentum and lack of bullish crossover signals.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.
📊 Volume Trends: Current volume (8,93,700) is slightly above average weekly volume (7,87,184), showing moderate participation in the recent decline.
🎯 Entry Zone: 770–790 ₹ (near support and oversold RSI).
🎯 Exit Zone: 850–880 ₹ (near 50 DMA and 200 DMA resistance).
Positive
- Massive market cap of 5,05,398 Cr. ensures strong industry dominance.
- Low P/E of 9.89 compared to industry PE of 80.8, making valuation attractive.
- Strong ROCE (53.4%) and ROE (46.0%) highlight excellent capital efficiency.
- Dividend yield of 1.50% provides income return to investors.
- Debt-free balance sheet (Debt-to-equity ratio 0.00).
Limitation
- Stock trading below both 50 DMA and 200 DMA, showing weak momentum.
- Quarterly PAT declined sequentially (10,053 Cr. vs 10,987 Cr.).
- RSI and MACD both indicate bearish undertone.
- PEG ratio of 0.08 suggests limited earnings growth relative to valuation.
Company Negative News
- Sequential decline in quarterly PAT.
- DII holdings decreased slightly (-0.02%), showing reduced domestic institutional confidence.
Company Positive News
- Quarterly profit variance of 31.9% indicates strong year-on-year growth.
- EPS at 80.8 ₹ reflects robust earnings power.
- FII holdings increased marginally (0.07%), showing foreign investor interest.
Industry
- Insurance sector trading at industry PE of 80.8, highlighting LICI’s undervaluation.
- Sector outlook remains stable with long-term growth potential in insurance penetration.
Conclusion
⚖️ LICI is in a bearish consolidation phase with oversold RSI and negative MACD. Entry near 770–790 ₹ offers margin of safety, while exits around 850–880 ₹ provide profit-taking opportunities. Long-term investors may find value due to strong fundamentals, low P/E, and high ROE/ROCE, while short-term traders should wait for confirmation of reversal signals before entering aggressively.
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