Relcap zooms on back of robust Q1 result of Nippon

Reliance Capital’s subsidiary, Nippon Life Insurance announced its financial performance for Q1FY19 on Tuesday where it posted persistency and premium growth. The stock of Reliance Capital surged nearly 4 per cent, registering its third consecutive uptick after consolidating for a while at its 52-week low level.

Nippon’s 13th month persistency surged to 71 per cent in June 2018 from 66 per cent. Individual Weighted Received Premium grew 23 per cent at Rs. 171 crore, while the Total Premium came in at Rs. 755 crore, registering 8 per cent growth.

Company’s AUM came in at Rs. 19,335 crore, posting 11 per cent uptick. Average Ticket Size also revived to more than Rs. 38,900, up 22 per cent.

Coming back to the stock of Reliance Capital, it had broken major support at 360 level during July 16, where it also hit a new 52-week low at 334.50 giving a huge Bearish candle. However, the stock consolidated at lower levels and bounced back, where it hit above its 50-day EMA resistance at 365 levels and is approaching its 100-day EMA at 380 levels. Volumes were seen falling in the last couple of sessions, but oscillators and share prices witnessed a positive divergence. We can expect some more upside in the stock in the upcoming session.