BackLIC share price rises on third straight session. Right time to accumulate?
LIC share price may give strong upside movement after giving breakout above ₹700 levels on closing basis, believe experts
PremiumLIC share price: After making a new low of ₹650 per equity share on the NSE, Life Insurance Corporation of India (LIC) share price has been rising for the last three consecutive sessions. LIC shares opened upside for the third day in a row and surged on to hit an intraday high of ₹678.80 apiece levels, logging around 2 per cent rise from its yesterday's close of ₹665.20 per share.
According to stock market experts, such a rise in LIC shares should be treated as mere bounce back that might have emerged due to short covering. They said that LIC shares have been nosediving ahead of the end of lock-in period for anchor investors. They went on to add that fundamentals of the stock are still weak and one should avoid taking fresh position in the Life Insurance stock till it gives a breakout above ₹700 on closing basis.
Speaking on LIC share price outlook, Saurabh Jain, Vice President — Research at SMC Global Securities said, "LIC has reported weak Q4FY22 numbers and its commentary is also not much promising. Market is expecting tepid quarterly numbers in next two to three quarters as well. So, one should avoid taking fresh position in LIC shares as bounce back in a stock after long-sell is a usual phenomena as people square-off their short-covering after long sell-off spree."
Echoing with Saurabh Jain's views, Sumeet Bagadia, Executive Director at Choice Broking said, "One should avoid taking fresh position in LIC shares till it is trading below ₹700. The stock is expected to give upside movement only after giving breakout above ₹700 levels on closing basis. Till then one should avoid taking any fresh position."
Last fortnight, brokerage and research firm Emkay said it has initiated coverage on LIC shares with a neutral view and has the stock's 12-month target price at ₹875, which is below its initial public offer (IPO) issue price. BoFA Securities has also recommended investors to initiate buy in LIC shares with long term target of ₹930 per equity share.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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