PSU stock bets after assembly elections lift LIC to new 52-week high
In trade on December 7, the stock marked a new 52-week high of Rs 788, a gain of 5.63 per cent over the previous close.
Riding the election results, which are proving to be optimistic for PSU stocks in general, state-owned LIC has leaped by over 17 per cent in three days, considering the close on December 1. In trade on December 7, the stock marked a new 52-week high of Rs 788, a gain of 5.63 per cent over the previous close. The gains in the leading insurer are seen even as the headline indices trade under pressure after a one-week-long winning run.
The gains in the stock are also seen as investors and other stakeholders cheer the company's new product Jeevan Utsav.
Technically also the stock shows strength with price target at Rs 900. Jigar S. Patel, Sr, Manager- Equity Research, Anand Rathi providing his technical outlook on the counter said since the last 2 weeks or so, the said counter has gained massive momentum and pumped near 200 points after hitting the low of 598, approximately, and is currently placed near the 800 mark. As we advance, support is expected to be near 750, and resistance is placed at 850. Thus, we advised you to buy dips and expect upside to 900 levels in the coming few months, added the expert.
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Echoing a similar view, Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox stated that shares of Life Insurance Corporation of India may enter an optimistic outlook if succeeds in holding the current bias over 750 level. The long-term trend would then forecast a price objective of 900 mark, he remarked. The support for the current bias exists at 740 level.
The appearance of rising volumes in the current trend clearly denotes the participation, that could lead to accumulation if the price provides a healthy correction, the expert added.