HDFCLIFE: Back to Crucial levels

Jul 25

Insurance stocks have recently performed well. During one of our MasterClass sessions, we identified HDFCLIFE, which is paying off well so far. But the stock is also clearly headed for crucial resistances that had kept it down. Here are my thoughts -

1. I have used simple demand & supply zones, anchored VWAP and Volume Profile to analyse the weekly chart of HDFCLIFE

2. Trend and momentum-wise, it is a brilliant chart that now needs to deal with (680-700). Considering the overall market conditions, one should expect a slowdown of this recent move in this zone.

3. The next zone to watch out for is at (730-750), but for that to happen, the stock should buy some time and consolidate/ correct.

4. This positive price structure can continue as long as the erstwhile fractal high of (630-640) is intact.

5. I prefer to book out into momentum, so the 21-day-old trade in HDFCLIFE, which we identified, will be booked out soon within (680-700).

Feel free to share your thoughts.

Trade Well.