LIC Housing Finance breaches major resistances

Financial sectors viz, PSU Banks, NBFCs and other banks pulled the markets up from their crucial support levels. Short covering in these sectors led to the bounce back in the benchmark indices from their multi-month lows. Thereby, the housing Finance company, LIC Housing Finance closed 5 per cent up from previous close and grabbed second largest position in the Nifty Financial Service index.

LIC Housing Finance was almost open-low at 521 and surged gradually with higher tops and higher bottoms despite volatility in the markets. The stock was already trading above its 21 days EMA resistance level. Today the stock breached its 50 days EMA resistance at 527-528 level almost after mid-October 2017. Now the stock holds 100 days and 200 days EMA resistances at 553 and 583 levels respectively.

Technically, the stock was trading with lower tops and lower bottoms since June 20, 2017. The stock made a low at 476.60  on March 08, 2018 and bounced back. Recently the stock broke out of its major resistance range of  520-530, breaking the lower top lower bottom pattern. The stock broke out of its downward sloping trendline level at 526. It also gave a breakout of kind of an Inverse Head & Shoulders pattern breakout. With this the stock holds potential to give immediate upside or upside with a slight pullback.