Chart check: Analyst expects further 9% gain in this insurance stock

GIC RE stock has witnessed a falling trendline breakout after a phase of strong consolidation on the daily chart, says Om Mehra, technical research analyst at SAMCO Securities.

General Insurance Corporation of India RE (GIC RE), the state-owned reinsurance company's stock has been in limelight in recent trading sessions amid the Q3 earnings, and gained over 4 per cent in the last three trading sessions. That apart, the stock has been on radar as a potential disinvestment candidate.  GIC RE on February 7 reported its Q3 results. The re-insurer posted a 6 per cent dip in Q3FY26 net profit at ₹1,519 crore when compared with ₹1,621 crore reported in Q3FY25. Total income rose by 10.3 per cent year-on-year (YoY) to ₹11,557 crore from ₹10,479 crore.  For the nine-months ended December 2025, the re-insurer's registered a near 36 per cent growth in net profit at ₹6,138 crore. Underwriting losses narrowed by 37.6 per cent to ₹1,847.32 crore in 9MFY26.

GIC RE stake sale buzz

According to reports, the Indian government held roadshows in London to assess investor interest for a minority stake sale in the state-run reinsurer in December 2025. READ MORE  Reports suggested that the government, which holds up to 82.4 per cent equity, intends to offload up to 10 per cent shareholding in GIC RE to meet Sebi's minimum public shareholding norm. 

GIC RE stock outlook

The daily chart of GIC RE shows that the stock has been hovering around its long-term 200-day moving average (200-DMA) for the last eight months, since early June 2025. The long-term average now stands at ₹381 levels.  Meanwhile, technical analyst Om Mehra of SAMCO Securities is bullish on GIC RE stock, and expects the stock to extend the rally from current levels.   

GIC RE stock chart

 

  "GIC RE  has been consolidating within a broad range and is now showing improvement after defending a strong base in the ₹365 – ₹370 zone, supported by a breakout above the falling trendline on the daily chart. This move suggests that the corrective phase is losing momentum and a recovery is taking shape," explains Mehra.  The analyst believes that the momentum oscillators and the traded volume are also in favour of the stock.  "The RSI reflects strengthening participation without entering an overstretched zone, while the MACD turning positive points to improving underlying momentum. Volumes have started to rise alongside the price, indicating better acceptance at higher levels rather than short-term covering. The DMI setup has also turned positive," says Mehra.  On the upside, the analyst expects the stock to rally toward ₹400–₹420 zone if the current momentum sustains, and as long as the stock holds above its support base.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.