Quant Pick - HDFC Life - ICICI Direct

Time frame: Three months

Derivatives & Quantitative Outlook

The insurance space has largely remained a laggard in the last couple of months with stocks like HDFC Life underperforming its peers in the ongoing recovery. However, we believe the stock is in a consolidation phase and there is substantial room for upsides. With initial signs of short covering visible, we believe the current move is likely to continue towards Rs. 600.

The open interest in the stock has increased sharply in the last two months. Current OI in the stock is at a lifetime high near with more than 3 crore shares. As the stock has failed to participate in a market move, short positions were formed in the stock. Last few sessions of the March series saw closure of open interest, suggesting short covering. We believe the ongoing short covering will continue, which should take the stock higher in the coming trading sessions.

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Shares of HDFC Life Insurance Company Limited was last trading in BSE at Rs. 522.10 as compared to the previous close of Rs. 526.15. The total number of shares traded during the day was 219988 in over 5880 trades.

The stock hit an intraday high of Rs. 526.00 and intraday low of 519.10. The net turnover during the day was Rs. 115217445.00.

Source : Equity Bulls

Keywords

HDFCLifeInsuranceCompany INE795G01014 HDFCLIFE QuantPick ICICIDirect