SBI Life, HDFC Life: Insurance stocks can rally up to 20%. Stay put for now

HDFC Life's acquisition of Exide Life Insurance last week has brought back the focus on insurance sector plays. Are they a good bet at the current levels? Here's what charts say

SBI Life Insurance Company Limited (SBILIFE)
Likely target: Rs 1,500
Upside potential: 20%
 
The stock of SBI Life Insurance has seen a spike of almost 85% on the year-to-date basis. The stock is likely to see some profit booking over the next few sessions, but the overall trend continues to be positive for the coming months. Support, on a closing basis, remains at Rs 1,150 level, and then Rs 1,050. Both these were the recent breakout levels, as per the daily and weekly charts. Also, the counter is not reflecting any major downside in the overbought category of Relative