SBI Life, HDFC Life: Should you bet on insurance stocks amid Covid-19?

ICICI Lombard is heading towards an all-time high of Rs 1,440.40 with strong intensity.

Most insurance stocks were trading in the positive territory in the morning trade on Thursday. For instance, ICICI Lombard was up over 5 per cent at Rs 1,451 on the BSE while ICICI Pru Life was trading 1.65 per cent higher at Rs 455.40. SBI Life Insurance, on the other hand, was quoting nearly a per cent higher at Rs 855.45. In comparison, the benchmark S&P BSE Sensex was trading flat at 43,817.99 levels. 

According to a Business Standard report, life insurers reported a 32 per cent jump in new business premiums (NBP) in October, helped by healthy growth in single premiums and group non-single premiums. NBP is the premium acquired from new policies in a year. 

Meanwhile, Covid-19 pandemic has increased awareness about health insurance, leading to a surge in demand for such products. Data compiled by general insurance council shows the health segment has grown 16 per cent in the first half of FY21 (H1FY21), with the retail health growing more than 34 per cent and group health growing almost 6 per cent, said a yet another report by Business Standard. READ MORE

Given this, here's a look at how select insurance players look on charts and what should be your trading strategy.

SBI Life Insurance Company Limited (SBILIFE): The biggest breakout is above the firm closing of Rs 900 levels. To achieve that mile, this counter must cross the immediate resistance of Rs 880 and Rs 890 levels. The trend is positive till it defends the support of Rs 825 levels. The Moving Average Convergence Divergence (MACD) trades with a positive crossover suggesting an upward bias. CLICK HERE FOR THE CHART
 
HDFC Life Insurance Company Ltd (HDFCLIFE): After crossing the all-time high of Rs 647.60 levels, the stock is witnessing selling pressure around Rs 680 levels. On the downside, the support stays at Rs 840 levels on the closing basis. The overall trend is positive, but needs to conquer the resistance of Rs 680 decisively for the next course of the rally. CLICK HERE FOR THE CHART
 
ICICI Prudential Life Insurance Company Ltd (ICICIPRULI):  The weekly chart indicates a firm support of 200-weekly moving average (WMA) near Rs 400 levels. Now, with the stock crossing 50-WMA located at Rs 427, the upside bias is highlighting the rally towards Rs 480 levels, which is its next resistance. The MACD has successfully surpassed the zero line showing a positive momentum. CLICK HERE FOR THE CHART
 
ICICI Lombard General Insurance Co Ltd (ICICIGI): This counter is heading towards an all-time high of Rs 1,440.40 with a strong intensity. This move may further see an added interest of market participants resulting in a rally towards Rs 1,500 to Rs 1,550 levels. The consolidation in the range of Rs 1,335 to Rs 1,200 has also pushed volumes on the buy side. CLICK HERE FOR THE CHART
 
Max Financial Services Limited (MFSL): The stock is trading in a consolidation range of Rs 570 to Rs 640 levels. A decisive close above Rs 640 may trigger an upside towards Rs 700 levels. The overall trend looks promising since the stock trades comfortably above the 50-DMA and 100-DMA. The immediate support comes in at Rs 600 levels. CLICK HERE FOR THE CHART