Stock alert! Amid Covid-19, insurance demand grows – Check what brokerags say for HDFC Life, ICICI Pru Life share prices

Amid the Covid-19 pandemic in the country, insurance companies have received a huge demand in the recent past and experts expect the stocks in this sector to give bumper returns. In this regard, Anand Rathi Share and Stock Brokers Limited expect the same from HDFC Life and ICICI Pru Life.

in its Monthly Bulletin, the brokerage firm while pointing out its technical chart mentioned, HDFC Life has confirmed a breakout from the pattern ‘Inverse Head & Shoulder’ in November 2020, and thereafter the stock has been consolidating.  

The stock is hovering near the placement of its 200 DSMA and 200 DEMA, which is seen as very strong support by the brokerage.

Terming that the current market price of the stock is at a decent risk-reward, Anand Rathi’s brokerage firm advises traders to buy the stock in the range of Rs 680-650 per share with a stop loss of 580 on a closing basis for the upside potential target of 780 followed by 820 levels in the coming months.

Another stock on the brokerage’s radar is from the same sector – ICICI Pru Life, which has a similar kind of formation like HDFC Life, Anand Rathi Share and Stock Brokers Limited said in a bulletin.

As per the weekly chart, ICICI Pru Life confirmed a breakout from a pattern that resembles inverse ‘Head and Shoulder’. And, it has managed to give breakout above this after 2019, which indicates a strong buying demand for the stock, the brokerage firm further said in a report.

It advises, the traders to buy the stock in the range of Rs 560-520 per share with a stop loss of Rs 480 on a closing basis for the upside potential target of Rs 630 per share followed by Rs 660 per share levels in the coming months.

Erasing its gains, the shares of both the private insurance companies HDFC Life and ICICI Pru Life are trading around half a per cent lower, near day’s low level to Rs 684.45 and Rs 570.65 per share.