Technical view: HDFC Life

Recently, the company declared better-than-expected quarterly numbers. HDFC Life aims for robust growth and expects strong performance in the coming quarters.

The stock of HDFC Life Insurance Company Ltd is gaining momentum and surged over 3.5 per cent during Friday’s trading session. Since its prior swing low, the stock has gained about 11 per cent in just three trading sessions. Interestingly, the stock is seen forming a bullish candle on the weekly timeframe and its volume has risen for the third consecutive week. With this, it has surged over 20-DMA and 50-DMA with above-average volumes. It was in a strong correction mode as it lost about 35 per cent of the value since its all-time high. However, the stock looks for a bounce back and has already gained about 18 per cent since its March low.  

The 14-period daily RSI (61.48) has crossed above its prior swing high and entered the bullish territory. The +DMI is well above the -DMI while the ADX is pointing northwards, indicating a strong uptrend. The MACD had given a bullish crossover in the previous trading session while the Elder Impulse System maintains the buy signal. The KST and TSI indicators show bullishness in the stock.   

On a YTD basis, the stock has underperformed the broader market and lost about 8 per cent during the period. However, in the past one month, the stock has performed exceptionally well and gained about 13 per cent; hence, beating its peers. Recently, the company declared better-than-expected quarterly numbers. HDFC Life aims for robust growth and expects strong performance in the coming quarters. The stock is showing signs of reversal as well as improvement and has a lot to gain. Thus, medium-term traders have a great opportunity in this stock and can expect good gains in the times to come.