The stock of LIC Housing Finance surged 3.3 per cent accompanied by above average volume, breaching its 21-day moving average as well as downtrend-line on Wednesday. This gives a buying opportunity for investors. Following a medium-term downtrend from the stock’s 52-week high of Rs.509 marked in late February, the stock found support in the Rs.390-400 band. The stock subsequently changed direction triggered by positive divergence in the daily moving average convergence divergence and price rate of change indicators.
The long-term uptrend is still intact. The indicators on the daily chart are heading towards the bullish zone adding strengthen to the uptrend. The short-term outlook is bullish for the stock.
It can extend the current rally and reach the price target of Rs.432.5 and Rs.440.5 in the approaching trading sessions. Buy the stock with a stop-loss at Rs.407.
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