LIC, GIC-Re & New India shares on a roll, surge up to 16%: How these PSU insurers look on tech charts?

Shares of public sector insurance companies Life Insurance Corporation of India Ltd (LIC), General Insurance Corporation of India (GIC-Re) and the New India Assurance Company Ltd (NIACL) jumped up to 16 per cent in Thursday's trade. All these three PSU insurers scaled their fresh respective one-year high levels today with strong momentum on the back of heavy trading volumes.

LIC soared 9.52 per cent to hit a on-year high of Rs 1,144.45 against its previous close of Rs 1,144.45. The state-run life insurer is scheduled to announce its quarterly earnings later in the day. The LIC board would also be considering a proposal of interim dividend for FY24.

On technical charts, immediate support on the counter could be seen around the Rs 1,050-1,070 zone. "LIC has witnessed a spectacular rally post the breakout around the Rs 670 zone. Since then, there has been no looking back for the stock price. The bullish gap Rs 1,050 is likely to cushion any blip, while major support lies around the Rs 940-950-odd zone. The overall trajectory seems buoyant, with some in-between blips. It is advisable to maintain a pragmatic approach and not to get carried away with recent developments," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Support will be at Rs 1,050 and resistance at Rs 1,150. A decisive close above Rs 1,150 level may trigger a further upside till Rs 1,200," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"LIC stock price looks bullish but also very overbought on daily charts with next resistance at Rs 1,209. Investors should book profits at current levels as a daily close below support of Rs 1,055 could lead to Rs 920 in the near term," said AR Ramachandran from Tips2trades.

The stock has resistance above Rs 1,180 level, said DRS Finvest founder Ravi Singh. Support will be at Rs 1,070, he added.

In case of GIC-Re, the insurer's scrip jumped 15.52 per cent to hit a record high of Rs 467. "GIC-Re is in a stellar bull run. The stock recently has gauged strong momentum on the back of volumes and soared to its lifetime highs. Over 20 per cent of move in this week, the counter underwent an overbought trajectory, requiring a cautious approach. The undertone remains buoyant with some in-between hiccups. Rs 400 zone likely to be seen as intermediate support, followed by Rs 370-odd zone," said Osho Krishan from Angel One.

"Immediate support will be at Rs 440 and resistance at Rs 470. A decisive close above Rs 470 level may trigger a further upside till Rs 500," said Jigar Patel from Anand Rathi.

"GIC-Re looks bullish but also very overbought on daily charts with next resistance at Rs 487," said Tips2trades' Ramachandran. Investors should book profits at current levels, he mentioned.

Ravi Singh from DRS also suggested similar support and resistance levels for GIC-Re.

Separately, NIACL shares zoomed 15.39 per cent to hit a one-year high level of Rs 314.60. Angel One's Krishan said, "The stock has also witnessed a stellar rally with nearly 35 per cent gains in the current week. It has witnessed a breakout from Rs 260-odd zone, which now should be acting as a strong support zone in the coming future. Post such a rally, the possibility of profit booking should not be ruled out. Hence, one needs to maintain caution with bullish biases."

"Support will be at Rs 285 and resistance at Rs 315. A decisive close above Rs 315 may trigger a further upside till Rs 330," said Anand Rathi's Patel.

For NIACL, Ramachandran from Tips2trades said investors should book profits at current levels.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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