LIC Housing Finance Ltd. is one of the largest Housing Finance company in India with market cap of 24000crs. Currently on the price chart, it is looking bullish from a medium term perspective for target of 550. The below shown daily chart of LICHSGFIN is showing bullish breakout from a 6 month falling trend line. The short term trend of the stock is up. The slope of 50 and 100 DMAs are now up; confirming strength. The medium term MACD indicator is sloping upward and has moved above the zero line indicating start of bullish momentum. Based on relative strength, the stock has outperformed against the broader market in last one year by 7%. Spurt in total traded volume along with rise in delivery volumes on breakout after a phase of consolidation in last couple of weeks is showing additional bullish evidence while the weekly chart pattern suggest that prices may move higher towards 550 in the medium term. Based on the above mentioned technical evidences, we are bullish on LICHSGFIN. We recommend accumulating the stock in the range of 475-485 for a target of 550 level.
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