LICHSGFIN : Trade SetupNSE:LICHSGFIN
Hi Traders,
After retracement, LICHSGFIN broken short term trend line and start to develop Higher High and Higher Low pattern. Current price zone is good for entry.
Entry and target level on chart.
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LICHSGFIN
LIC Housing give nice break outTraded above 20-50-100 EMA
RSI above 60
Triangle breakout after good result announcement.
Parent company public issue in pipe line
200 EMA is just hurdle @318
Close above 318 we may see 380-400 level.
Buy some qty at current level as well as add remaining qty near to 290 level with sl 275 on closing
LIC HSG FIN: Chart set up and viewLIC HSG FIN
CMP 266
- The stock is in consolidation mode
- trading near support levels 250-255
- Momentum above 285-296 zone
Target for the current set up 296 / 318 / 351-368 zone
- risk increases if LIC HSG FIN starts trading below 250
Consider buying in 2 tranches. At CMP & on dips towards 255
The current set up provides a risk::reward ratio of 1::3 at the minimum to go long
Take care & safe trading...!!!
Discliamer:
- The view expressed here is my personal view
- Use this for educational purpose
- Any decision you take you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
(Intraday) Sell LIC Housing Finace with shooting star formation
1. Inverted Umbrella Candle Formation on the day chart. The chart already took the reversal from the same.
2. Evening star formation on the last day closure.
3. LIC Housing Finance is the fifth leg of the GARTLEY FORMATION.
4. But , Ascending Triangle formation last 15M Chart. It price also retraced to 61.8% from the last peak. it indicate an uptrend.
So, please take the caution before the trade
5. Sell Below 274 Target 271 , 267 Stop Loss 276
Fundamental Analysis
1. Stock is trading at 0.76 times its book value
2. Second lowest P/E in the Industry
3. Second Best Operation Margin in the industry
4. EV/EBITDA is cheaper than HDFC
5. PEG Ratio 0.44
5. But, Debts are quiet high, which lower the interest coverage ratio
LIC Hsg Finance: Chart setup & strategy for July monthLIC HSG FIN
CMP 272.50
- The stock is at minor resistance
- 278-286 is ma major resistance
- Yellow Trend Line is the support which if taken out can weaken the structure further for a fall towards blue trend line
Given the setup, one may consider the following trading strategy
Consider Selling LIC HSG Finance 30 July 2020 expiry 300 Call option CMP around 9.5
Lot size 2000
Max profit potential Rs 19000/- per lot
Yield potential of 12.25% approximately till 30 July
Inbuilt Loss Protection for a rise in stock price up to 309.50 till 30 July 2020
Take care & safe trading...!!!
Discliamer:
- The view expressed here is my personal view
- Use this for educational purpose
- Any decision you take you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be