Trade Idea of The Day - LIC Housing Finance Ltd Target Rs. 35 - Religare Broking Ltd
LIC Housing Finance Ltd
BUY 25 AUG 520 PUT Entry Range (Outflow) 13 – 15 Target 35 Stop Loss 5
Rationale
1. LICHSGFIN witnessed a sharp bearish continuation, forming a fresh breakdown below its 22-day low with strong selling pressure and a robust bearish candle. The stock also slipped below the crucial support zone of 530, indicating that sellers remain firmly in control and the recent consolidation phase has resolved on the downside.
2. On the technical front, the stock prices are also trading below both the 20-DEMA and 50-DEMA, reinforcing the negative trend. The inability to reclaim these moving averages suggests weakening momentum, while any pullback towards 530-535 is likely to attract fresh selling interest.
3. Momentum indicators also support the bearish outlook. RSI has slipped below the 40 mark, reflecting deteriorating buying strength, while the MACD remains in negative territory with a bearish crossover, indicating that downside momentum could persist over the coming sessions.
Please refer disclaimer at https://www.religareonline.com/disclaimer
SEBI Registration number is INZ00017433
