Today the market has fallen drastically due to second lockdown news in FRANCE, SPAIN, and ITALY. In this market storm, the stock price of HDFC Life Insurance has closed in green and at a day high. If we go through the last two days volume, so it is double the average volume. The stock is looking gorgeous as per Fundamental and Technical analysis.
Technical Overview (Weekly Chart): On a weekly chart picture is clear, the stock price has made a lifetime high around 650 and fallen from the same levels trice. However, if we see a sequence of falls and rise, then it is clearly showing 85% completion of Inverted Head and Shoulder. Right now the second shoulder is not completed, but it is indicating rally till lifetime high. Major bullish chart pattern on a large time frame, it is a good sign of long term.
Daily Chart: Now
come to the small picture and price is trading in a down channel. It is trading
below the 20 & 50 DMA and many times resisted from the same levels. Today
price has crossed and closed above both DMA, and volume is good. If we see the line
chart then the stock has made Double Bottom and now ready for a breakout. Once
it breaks the previous Lower High, then the trend will change and there is one
small hurdle around 610 between lifetime high.
Fundamentals:
The
company is providing life insurance and due to COVID-19 demand has increased. The
company is virtually debt-free and expecting good quarterly results. The
return on equity is around 20%.
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----------------------------------------------------------------------------------------------- Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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