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SBI Life, ICICI Prudential: Here's how you can trade in insurance stocks

Insurance Sector overview
GIC OF INDIA (GICRE): The stock is trading within 50-days moving average (DMA) and 100 DMA, as per the daily chart. The sideways movement showing signs of consolidation in the counter. However, the last two sessions seem to indicate that a breakdown, as it failed to hold the range. That said, the low of the lowest two sessions i.e Rs 208.30 will determine the next level for this counter. Till the above-mentioned level is held, one can see revival towards Rs 227.50, its 100 DMA. On the other hand, if the stock trades continuously below its 50 DMA, which is currently placed at Rs 216.30, then a fall may aggravate and the counter can head towards Rs 198 and Rs 193. CLICK HERE FOR DETAILED CHART VIEW

HDFC STANDARD LIFE INSURANCE (HDFCLIFE): The stock is trading with a strong positive bias during this uncertain trend of frontline benchmark indices. A formation that depicts a rising channel pattern wherein higher highs and higher lows can be easily seen. Furthermore, every upside has seen the stock develop a stronger support, which is currently placed at Rs 480. A negative divergence can be seen on RSI indicator. If counter manages to conquer Rs 510, it can then head higher going ahead, the weekly chart suggests. CLICK HERE FOR DETAILED CHART VIEW

ICICI LOMBARD GENERAL INSURANCE (ICICIGI): Rs 1,200 looks to be the trend-deciding level. The overall candlestick pattern and chart formation during May to June, 2019 reveals a 'Head and Shoulder' breakdown. After a decent correction, the counter is showing reversal and needs to cross Rs 1,200 for a breakout. That said, this counter has seen decent buying in the range of Rs 1040 to Rs 1,070  CLICK HERE FOR DETAILED CHART VIEW

ICICI PRUDENTIAL LIFE INSURANCE (ICICIPRULI): It is the most bullish stock in the Insurance sector - waiting for a breakout and till now has been supported with strong volume. Although the counter is trading around Rs 400, a major breakout is expected above Rs 410. The last two sessions witnessed above average volumes with a positive close - a sign of bullishness. The immediate support comes at Rs 385, further down is Rs 377, which is 50 DMA as per daily chart. Lastly, the MACD (Moving Average Convergence Divergence) is above zero line and has a positive crossover. CLICK HERE FOR DETAILED CHART VIEW

SBI LIFE INSURANCE (SBILIFE): A “Golden Cross” formation has see the counter surge 18 per cent in the last two months. There has bene a jump in the tardibg volume as well. The counter is well placed above its 50 DMA, which is placed at Rs 724. Till the time major technical indicators - RSI and MACD - do not give convincing negative crossovers, the counter should see higher levels going ahead.  Although, it is finding minor resistance at Rs 810, a breach of this of this may take the scrip to Rs 840 and Rs 860, as per daily chart. CLICK HERE FOR DETAILED CHART VIEW

THE NEW INDIA ASSURANCE (NIACL): The stock got listed in 2017-end has not seen much of buying interest from market participants. As the counter failed to give major breakout above 200DMA, the selling pressure has been extensive and the stock has remained out of investors' sight. Every upside has seen selling pressure and the same scenario may continue CLICK HERE FOR DETAILED CHART VIEW

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