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HDFC Life Technical Analysis #76: Buy | Target Rs 520 | Arijit Banerjee

OUR RECOMMENDATION

CMP#494.35
IdeaBUY
Buy Range485 – 494
Target520 – 530
StopLoss*475
Duration12 – 15 Trading Sessions
Potential Return^5 – 7%
CMP#IdeaBuy RangeTargetStopLoss*DurationPotential Return^
494.35BUY485 – 494520 – 53047512 – 15 Trading Sessions5 – 7%

# CMP on Aug 02, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 507.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

This life insurance company provides individual and group insurance plans and policies such as Protection, Pension, Savings and Investment, Health, Retirement, unit linked insurance, NRI plans along with Children’s and Women’s Plans. Founded in 2000 with a strong network presence over 900 cities in India, HDFC Life Insurance is a subsidiary of HDFC Limited. The Insurance company posted 11.84% jump in net profit at Rs 425.71 crore in Q1FY20; revenue up 29.11%.

Stock Data
NSE CodeHDFCLIFE
Sectoral IndexFinancial Services
52W High533
52W Low344.4
Face Value10
Relative Performance_HDFC Life Insurance vs Nifty Financial Services

TECHNICAL OBSERVATIONS (WEEKLY)

  • HDFC Life has taken support several times on weekly trendline which is moving higher.
  • The trendline is acting as strong support over the past 12 weeks.
HDFC Life Insurance Weekly Chart
HDFC Life Insurance Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • Looking at the daily chart, stock has seen spectacular rally from the bottom of around 375 (May 17, 2019) and extended towards north direction with a strong support line.
  • The recent closing 494.35 is above 5 days and 10 days EMA, indicating stock is ready for an up move.
HDFC Life Insurance Daily Chart
HDFC Life Insurance Daily Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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