Technical Analysis

LIC Housing Finance (₹358.5): SELL

Gurumurthy K |BL Research Bureau | Updated on: Jun 07, 2022

Traders can go short at current levels

The short-term outlook for the stock of LIC Housing Finance is bearish. The stock has been broadly trading in a sideways range since December last year. Within this range, it made a high of ₹385 last month and has turned down. On Tuesday, it fell 3.9 per cent, thereby confirming the sideways is still intact. It has also intensified the selling pressure. The stock can fall to ₹325 in the next one or two weeks.

Inability to bounce from ₹325 and a fall below it can drag the stock price down to ₹300 eventually. Traders can go short at current levels. Accumulate shorts on a rise at ₹368. Keep the stop-loss at ₹378. Trail the stop-loss down to ₹353, as soon as the stock falls to ₹343. Move the stop-loss further lower to ₹341, as soon as the stock touches ₹336 on the downside. Book profits at ₹332. Key resistances are at ₹375 and ₹385. The stock will have to breach ₹385 in order to turn the overall outlook bullish. But such a strong rise looks less likely, as the 200-Day Moving Average, which is also currently around ₹385 has been restricting the upside for a long time.

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

Published on June 08, 2022
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