Investment_ LICI (Life Insurance Corp)Namaste!
LICI has been hit hard for the mainly two reasons,
1. Previous performance of other IPO stocks such as Paytm, Zomato, Etc.
2. Current bearish sell-off (in over all global markets).
Investment Objective: If Nifty/Sensex give 10-12% annual average return, my goal is to beat the index. Means we will try to generate >12% annual return. We can include stocks with high risk and high reward (such as Paytm, Zomato and LICI) to make a portfolio, along with other blue-chip stocks so that, we increase our returns with a little increase in our risk. I would not advice investing more than 10% of your investment capital in each. Remaining 70% should be invested in other blue-chip stocks.
The logic: Look, there is always a resistance at the high of red candles. As you can see in the chart, this will be the 3rd attempt for a breakout. Each time the resistance get a hit, it becomes weaker and weaker. The probability of a breakout increases with the number of hits. So, Rs 669.40 is a most logical price for an entry. Always remember, our goal is to beat the index. As long as our basket of stocks performs well, we should be happy.
Disclaimer: Investment carries an element of financial risk. Investment does not guarantee a fixed return due to volatile nature of markets. Please do your due-diligence before investing.
