Time to book profit in insurance stocks as GST meet looms? Key levels here

Star Health, ICICI Lombard, ICICI Pru Life, SBI Life and HDFC Life stocks have zoomed up to 28% so far in the September quarter. Time to keep track of these key pivot points as per technical charts.

Shares of insurance related companies are in focus once again amid expectations on relief in GST levy ahead of the Council meeting scheduled for Monday, September 09. 

With a view to make health insurance more affordable in India, the Department of Financial Services (DFS) had proposed to lower the GST rate on insurance products from 18 per cent to 5 per cent.

According to reports, the Fitment Committee which was tasked to review the proposals from various stakeholders has left the final decision with the GST Council.

That apart buying at these counters was also attributed to reports that LIC had approached the insurance regulator Insurance Regulatory and Development Authority (Irdai) to review surrender value guidelines.

 

Meanwhile on the bourses, the stock price of ICICI Lombard General Insurance has surged over 6 per cent thus far in the month of September. SBI Life has gained 3 per cent; while ICICI Prudential Life and HDFC Life Insurance Company have added 2 per cent each.

So far in this quarter, shares of insurance firms including Star Health & Allied Insurance have gained up to 28 per cent. On Thursday, insurance stocks were trading on a mixed note just days ahead of upcoming GST meeting.

Against this background, here's a trading guide with key support and resistance levels for these stocks.

ICICI Lombard General Insurance

Current Price: Rs 2,269

Upside Potential: 6.7%

Support: Rs 2,220; Rs 2,190

Resistance: Rs 2,281; Rs 2,314

ICICI Lombard General Insurance stock has rallied over 44 per cent in the last 14 straight weeks, and nearly 27 per cent in the last three months. On the daily scale, the stock is seen treading along its higher-end of the Bollinger Bands. 

The chart suggests that the near-term bias for the stock is likely to remain upbeat as long as the stock holds above Rs 2,220 - Rs 2,190 support levels. On the upside, the stock could potentially surge to Rs 2,420; with interim resistance seen at Rs 2,281 and Rs 2,314 levels.

On the other hand, break and sustained trade below Rs 2,190 can trigger a price correction towards Rs 2,050 levels. CLICK HERE FOR THE CHART

ICICI Prudential Life Insurance

Current Price: Rs 767

Upside Potential: 5.7%

Support: Rs 755

Resistance: Rs 785; Rs 789

ICICI Prudential Life Insurance stock has rallied over 26 per cent so far in this September quarter. The long-term chart suggests that the stock is likely to trade on a buoyant note as long as it holds above Rs 755. 

On the upside, the stock can potentially rally to Rs 811; with interim resistance seen at Rs 782 and Rs 789 levels. On the flip side, break and sustained trade below Rs 755, can trigger a corrective move towards Rs 725-odd levels. CLICK HERE FOR THE CHART 

HDFC Life Insurance Company

Current Price: Rs 754

Upside Potential: 4.8%

Support: Rs 739

Resistance: Rs 756; Rs 771; Rs 781

HDFC Life Insurance Company stock too has surged more than 26 per cent since the start of this quarter. At present the stock seems to be facing some resistance around Rs 756; above which the stock can potentially rally to Rs 790 levels. Interim resistance for the stock is seen at Rs 771 and Rs 781.

On the downside, key support for the stock exists at Rs 739; break and sustained trade below the same can trigger a corrective move towards Rs 690 levels. CLICK HERE FOR THE CHART

SBI Life Insurance

Current Price: Rs 1,906

Upside Potential: 7.8%

Support: Rs 1,850

Resistance: Rs 1,952; Rs 1,976

SBI Life Insurance has zoomed nearly 28 per cent in the same three months. The stock is expected to trade with a bullish bias as long as it holds above Rs 1,850. On the upside, the stock can potentially surge to Rs 2,054 levels; with interim resistance seen at Rs 1,952 and Rs 1,976 levels. 

In case of a price correction, break and sustained trade below Rs 1,850 could trigger a slide towards Rs 1,725 levels. CLICK HERE FOR THE CHART

Star Health & Allied Insurance

Current Price: Rs 640

Upside Potential: 5.8%

Support: Rs 647; Rs 667

Resistance: Rs 629

Star Health & Allied Insurance stock has gained 14.5 per cent in the same above mentioned period. At present the stock seems to be facing some resistance around Rs 643, above which near resistance for the stock is seen at RS 647.

On the upside, the stock can potentially surge to Rs 677; with interim resistance likely at Rs 658 and Rs 667. On the other hand, break and sustained trade below the support at Rs 629 can trigger a fall towards Rs 580 levels. CLICK HERE FOR THE CHART