Todays Pick

ICICI Prudential Life Insurance Co (₹506.5): Buy

Akhil Nallamuthu BL Research Bureau | Updated on January 23, 2020

Traders can buy the stock of ICICI Prudential Life Insurance Company as it seems to have resumed its uptrend after a correction.

After declining in early January 2019, the stock has been in a strong uptrend. It appreciated from ₹277 levels to ₹537.3 — its lifetime high. What followed was a price correction that resulted in stock depreciating to ₹471. The stock has bounced from that level and closed above the important level of ₹500 on Tuesday. Thus, the price has formed higher high on the daily chart, indicating renewed bullish momentum. Also, the stock has closed above both 21- and 50-DMAs.

Corroborating the bullish view, the daily RSI is showing a fresh uptick and has crossed above the midpoint level of 50. The MACD indicator on the daily chart has moved into the positive territory, hinting that the uptrend is gaining momentum.

Traders can initiate fresh long positions on declines with stop-loss at ₹488 for a target of ₹536.

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

Published on January 23, 2020

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