LIC trims stake in large-caps: Check how Sun Pharma, Maruti look on charts

The technical outlook for Sun Pharma and Maruti remains bullish, while the trend for Bajaj Auto is looking weak on charts. Power Grid, meanwhile, needs to overcome the hurdle of Rs 240 level

Life Insurance Corporation of India (LIC), the government-backed insurance behemoth with significant investment in domestic market, has trimmed its stake in major listed companies in the July-September quarter (Q2FY23).

These include Bajaj Auto, Maruti Suzuki India, Power Grid Corporation of India, Sun Pharmaceutical Industries, and Mahindra & Mahindra, among others. In total, LIC reduced its exposure in 105 listed equities during the quarter.  

LIC sold 4.3 million shares of Maruti during Q2FY23, reducing its holding to 3.43 per cent from 4.86 per cent. It also cut its stale in Power Grid Corporation to 3.40 per cent from 4.99 per cent. 

Further, it offloaded 1.11 per cent stake in Sun Pharmaceutical Industries to 4.38 per cent. Its holding in Mahindra & Mahindra was trimmed to 6.42 per cent from 8.43 per cent, while its is now 3.40 per cent in Power Grid Corporation after selling 1.1 million shares in Q2FY23. 

So far this year, Bajaj Auto, Maruti Suzuki India, Power Grid Corporation of India, Sun Pharmaceutical Industries, and Mahindra & Mahindra have performed well in comparison to the benchmark indices. 

Among this pack, Mahindra & Mahindra has soared 47 per cent, Maruti Suzuki India and Sun Pharmaceutical Industries have surged 21 per cent each year-to-date. Bajaj Auto and Power Grid Corporation of India have gained 15 per cent and 10 per cent, respectively, so far in 2022.

Here’s the technical outlook on these stocks:

Sun Pharmaceutical Industries Ltd (SUNPHARMA) 

Likely target: Rs 1,200

Upside potential: 20%

Sun Pharmaceutical Industries conquered a record peak for the first time this month after 2015. This momentum is here to stay, with the stock foreseen to scale further highs in the short term. The immediate support exists at Rs 975 to Rs 950 range. The trend is buoyant, with the price action witnessing gradual up move. The overall trend is pointing to Rs 1,200 level. CLICK HERE FOR THE CHART

Power Grid Corporation of India Ltd (POWERGRID)

Outlook: Consecutive hurdles on reversal, major trend above Rs 240

The next major trend in Power Grid's shares is anticipated once the obstacle of Rs 240 is taken off. This mark has become a key hurdle since May this year. The stock not only failed to leap over, but also disappointed in sustaining near this level. The current price action shows weakness near Rs 235 mark, as per the daily chart. 

The stock can make another attempt to combat the hurdle of Rs 235, followed by Rs 240 until the stock protects its closing basis support of Rs 210. CLICK HERE FOR THE CHART

Mahindra & Mahindra Ltd (M&M)

Outlook: Stable as long as above Rs 1,170.

Shares of Mahindra & Mahindra could lose the bull grip, if the stock slips beneath the foremost cushion of Rs 1,170 mark, which has bolstered the stock since June 2022. If that happens, the stock could fall to Rs 1,100 mark, and may even dip lower. Otherwise, the present trend signals stability could emerge near Rs 1,200-mark, as the stock has seen relative sell-off in recent sessions. CLICK HERE FOR THE CHART

Maruti Suzuki India (MARUTI)

Outlook: Stock to rally towards Rs 9,400.

Over the past few months, shares of Maruti Suzuki India have built a support base in the range of Rs 8,600 to Rs 8,400 levels. And as long as this range is defended, with robust sentiment, the trend is expected to display a remarkable reversal back to Rs 9,400 level. 

While the stock has breached the 50-day moving average (DMA) support of Rs 8,984 level, it firmly intents to shield the 100-DMA mark at Rs 8,845. CLICK HERE FOR THE CHART

Bajaj Auto Ltd (BAJAJ-AUTO)

Outlook: Weak trend

Bajaj-Auto breached the major support of Rs 3,850 in September this year, eventually resulting in more weakness that now struggles to defend ground. The attempt made to cross this hurdle of Rs 3,850 earlier this month proved futile and the stock has since engulfed in more negative bias. The immediate support comes to Rs 3,500 level and the trend looks weak. CLICK HERE FOR THE CHART