We recommend a buy on the stock of LIC Housing Finance from a short-term perspective. It is apparent from the charts of the stock that following a medium-term downtrend from its 52-week high of Rs 300 registered on January 2, the stock took support at Rs 210 in late March. The stock changed direction triggered by positive divergence in the daily moving average convergence divergence indicator and cushioned by key support at Rs 210. Since then, it has been on a short-term uptrend. On Friday, the stock surged 6 per cent with good volume decisively breaking through its key immediate resistance at Rs 240 and 50-day moving average. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is moving higher in the neutral region. The daily MACD is moving higher in line with the stock price and is on the brink of entering the positive from the negative territory. The daily price rate of change indicator is featuring in the positive area implying buying interest. We are bullish on the stock from a short-term perspective. We anticipate its rally to continue and reach our price target of Rs 257 or Rs 262 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 242 level.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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