Hot stock tip! ICICI Prudential Life Insurance shares to rise 10 pct in one month, say experts
The daily time-frame chart of ICICI Prudential Life Insurance signals a near term bottom reversal pattern, say stock market experts.
Today, as the stock markets nosedived in early morning trading session with Sensex losing the psychological 39,000 levels, investors are again in a wait and watch mode. This situation has been made worse by the H-1B Visa issue that has been escalated by the US. However, the share market experts are of the opinion that fundamentals and technicals of any particular counter would be the major indicator of any particular stock and if the chart suggests strong fundamentals and technicals of a counter, the stock investors can think of taking a position in them. Experts say that ICICI Prudential Life Insurance is one such stock which can give 10-12 per cent return in 3-4 week time.
Giving technical details of the ICICI Prudential Life Insurance shares Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities said, "The daily time-frame chart of ICICIPRULI signals a near term bottom reversal pattern. After showing a sharp weakness in the last couple of weeks, the stock price has bounced up sharply this week from near the multiple supports of the uptrend line and 200day EMA around Rs 349-350 levels." Shetti said that present upside bounce from the low of Rs 351 could be considered as a new higher bottom of the sequence. Hence, more upside is likely in the near term.
On his suggestion to the stock market investors in regard to the ICICI Prudential Life Insurance shares Nagaraj Shetti of HDFC securities said, "Buying can be initiated at cmp (366), add more on dips down to Rs 352, wait for the upside target of Rs 398 in the next 3-4 weeks. Place a stop loss of Rs 343."
Prakash Pandey, Head of Research at Fairwealth Securities revealed that "Insurance company valuation and its business is sound these days. After the big reshuffle in the top management of the ICICI is helping them gain the faith of market investors, which became visible during the sharp rise in the FIIs investment into the banking sector where the ICICI was one of the four major beneficiary banks. Since the ICICI Prudential is a subsidiary company of the ICICI Bank, its benefit is expected to trickle down to them as well." He said that the ICICI Prudential Life Insurance counter can be a good buy for the share market investors as the counter has strong support at around Rs 350 levels and there would be some profit booking at around Rs 375 per stock levels and at that time an investor can take a buy position in the counter at around Rs 360 levels.
Note: Stock suggestion has been given by the market experts mentioned in the story. Readers should not take it as suggestions given by the portal.