SBI Life, HDFC Life: Insurance stocks can rally up to 20%. Stay put for now

HDFC Life's acquisition of Exide Life Insurance last week has brought back the focus on insurance sector plays. Are they a good bet at the current levels? Here's what charts say

SBI Life Insurance Company Limited (SBILIFE)
Likely target: Rs 1,500
Upside potential: 20%
 
The stock of SBI Life Insurance has seen a spike of almost 85% on the year-to-date basis. The stock is likely to see some profit booking over the next few sessions, but the overall trend continues to be positive for the coming months. Support, on a closing basis, remains at Rs 1,150 level, and then Rs 1,050. Both these were the recent breakout levels, as per the daily and weekly charts. Also, the counter is not reflecting any major downside in the overbought category of Relative Strength Index (RSI), suggesting that the profit booking / minor weakness is likely to see buying momentum. The stock faces a hurdele at Rs 1,500 levels.  CLICK HERE FOR THE CHART

 

 
HDFC Life Insurance Company Ltd (HDFCLIFE)
Outlook: needs to gain on follow-up buying
 
While the stock made an aggressive attempt to conquer the resistance range of Rs 750 – Rs 730 levels lately, it failed to gain on the follow-up buying. Until that happens, the counter is likely to face difficulty in crossing this resistance range. The closing basis support stays at Rs 700 levels, followed by Rs 680. In case of follow-up buying, the breakout may see the stock head in the direction of Rs 800 and then Rs 840 levels.  CLICK HERE FOR THE CHART

 
 
ICICI Prudential Life Insurance Company Ltd (ICICIPRULI) 
Likely target: Rs 780 and Rs 830
Upside potential: 12% to 19%
 
After successfully overcoming the monthly resistance of Rs 540 levels in April 2021, the stock has not looked back and has continued to rise upward - gaining almost 31 per cent to date. The current trend has a closing basis support at Rs 650 levels, and may rally to Rs 780 and Rs 830 from in the medium-term. The “Higher High, Higher Low” formation adds significant positivity to the bullish bias, as per the daily chart. CLICK HERE FOR THE CHART

 
 
ICICI Lombard General Insurance Co Ltd (ICICIGI):
Likely target: Rs 1,720 and Rs 1,780 (after breakout at Rs 1,650)
Upside potential: 4% to 7%
 
ICICI Lombard did clock a new all-time high of Rs 1,657 last week, but failed to add follow-up momentum, as per the daily chart. If the volumes do not support the upside strength from here on, the stock is likely remain volatile in the days ahead. While the current price patterns indicate a positive bias, ICICI Lombard General Insurance stocks needs to add volume on the next breakout mark of Rs 1,650 levels. When that happens, the tock may leap towards Rs 1,720 and then Rs 1,780 levels, as per the weekly chart. CLICK HERE FOR THE CHART

 

Max Financial Services Limited (MFSL)
Likely target:  Rs 1,160 and Rs 1,210 (after crossing Rs 1,100)
Upside potential:  5.5% to 10%
This counter is holding the support of 100-days moving average (DMA) since July, 2020. This moving average remains as a trend indicator for a medium-term view, currently placed at Rs 1085 levels. A significant breach of 100-DMA may disrupt the upside potential and invite bears to take control. The immediate resistance comes at Rs 1,100 levels. A decisive close above this resistance mark may open doors for Rs 1,160 and then Rs 1,210 levels for the counter, as per the daily chart.  CLICK HERE FOR THE CHART