HDFC Life, SBI Life hit 52-week high: Tech charts show further upside

HDFC Life is continuously holding the support of 50-DMA, currently place at Rs 702 mark

Most insurance stocks were trading in the positive territory in the morning trade on Tuesday. For instance, HDFC Life rose over 3 per cent to hit a fresh 52-week high of Rs 746 on the BSE while ICICI Pru Life was trading 1.8 per cent higher at Rs 487.90.

SBI Life Insurance, meanwhile, gained 4 per cent to hit a 52-week high of Rs 964.50. In comparison, the benchmark S&P BSE Sensex was trading 0.87 per cent higher at 50,880 levels, at 11:40 AM. According to a Business Standard report, February 2021 saw life insurers recording impressive 21 per cent growth in new business premium (NBP) to Rs 22,425 crore, compared with Rs 18,533 crore in the same period, a year ago. READ MORE

Here's how the insurance stocks look on the charts:
 
SBI Life Insurance Company Limited (SBILIFE): The stock has claimed new 52-week high of Rs 964.80 and is making efforts to cross the neckline of the double top, as per the weekly chart. A decisive breakout or a close above Rs 960 may see further upside towards Rs 1,020 mark, which is the next resistance. The closing basis support comes at Rs 920 mark. If the resistance of Rs 1,020 is surpassed with volumes, the rally may extend towards Rs 1,150 levels. CLICK HERE FOR THE CHART               
 
HDFC Life Insurance Company Ltd (HDFCLIFE): The stock is continuously holding the support of 50-day moving average (DMA), currently placed at Rs 702 mark. It has made a new 52-week high of Rs 746 levels. This move indicates strength in the stock that may lead it to even higher levels of Rs 800. The closing basis support stays at Rs 725. The overall trend suggests a sideways breakout at Rs 740 levels. This can be looked as Ascending Triangle breakout, which turns the medium-term outlook into highly bullish sentiment. CLICK HERE FOR THE CHART

ICICI Prudential Life Insurance Company Ltd (ICICIPRULI):  After breaching 50-DMA, the counter is witnessing selling pressure on every possible reversal. The 50-DMA is currently placed at Rs 492 mark and to breakout on the upside, the counter not only has to cross this resistance, but also needs to sustain above Rs 500 mark to attract buying momentum from market participants. The Relative Strength Index (RSI) indicates a double bottom breakout, yet the stock price is not showing any firm strength. The volume scenario also exhibits a sluggish move. CLICK HERE FOR THE CHART