LIC tops Rs 1,000-mark; Can rally another 13% suggests tech chart

The stock has rallied over 67 per cent since late November, and looks to be favourably placed on multiple time-frames as per the technical charts.

Life Insurance Corporation of India (LIC) on Monday topped the Rs 1,000-mark for the first time ever. The stock had debuted on the bourses in September 2022, after issuing shares at Rs 904 each for retail investors. 

Simultaneously, the largest insurer in India had issued shares to qualified institutional buyers (QIBs) and high net worth individuals (HNI) at Rs 949 apiece following its maiden share sale. Existing policyholders had received the shares at a discounted price of Rs 889.

Post issue, as of December 2023, the President of India, the promoter of LIC held 96.50 per cent stake in the company. Of the balance, retail investors held 1.97 per cent stake, followed by mutual funds (0.79 per cent) and foreign portfolio investors (0.06 per cent).

LIC is India's leading statutory insurance and investment corporation with assets under management (AUM) of Rs 47.43 trillion as on September 30, 2023 and investments in more than 270 listed companies. The company continues to diversify its product mix with a focus on enhancing the non-par share of products. READ MORE

On Monday, the state-owned insurer announced the launch of unit linked, regular premium, individual life insurance plan Index Plus. The plan, which will be available from today, offers life insurance cover-cum-savings throughout the term of the policy, the company said in a statement.

In January, LIC had launched a new non-linked, non-participating individual savings deferred annuity product- Jeevan Dhara-II.

Meanwhile, the company's board is scheduled to meet on February 8, 2024 to announce its December quarter results, and interim dividend, if any.

Technical Outlook

Current Price: Rs 1,014

Support: Rs 940; Rs 920

Upside Potential: 13%

The stock - LIC has been making higher highs and higher lows on the daily charts since the end of November 2023. In times of intermittent dips, the stock has consistently found support around its 20-DMA, and bounced back.

Similarly, on a weekly scale the stock has been treading along the higher-end of the Bollinger Bands and has rallied over 67 per cent during this period. 

Even though the key momentum oscillators are in overbought zone, they continue to indicate further strength at the counter. Further, the long-term chart suggests that the bias for the stock is likely to remain favourable as long as it holds above Rs 920-odd levels.

The yearly Fibonacci chart suggests that the stock is likely to find considerable support in the Rs 920 - Rs 940 zone; whereas on the upside, the stock can potentially rally to Rs 1,150, with interim resistance likely at Rs 1,080. CLICK HERE FOR THE CHART