Scrip Name: HDFC LIFE Time Frame: Daily EMA: 50 (Black) and 200 (Orange) Observations: 1. Golden Crossover in progress; expected to complete in the current week 2. Volumes supporting current bullish trend 3. Resistance seen at 601 and 615 levels from previous trading days 4. Support seen at 555 levels
Entry: Above 582.5 Target: 637 SL: 555
Comment
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The Target was breached on July 28, 2020 where it closed above target price of 637. It gave an absolute gains of 9.36% within a span of 23 days to be precise, which is much higher as compared to returns from FD or Mutual Fund. Happy Profiting !
1. The company is one of the 4-5 companies listed on the exchange. these are:
a. SBI Life Insurance
b. HDFC Life
c. ICICI Prudential Life Insurance
d. General Insurance Corporation of India
e. Bajaj Finserv Ltd.
Considering the overall group strength along with the exceptional execution capabilities of the management the company is well placed to gain further market share and organically grow its core business.
2. From the current market scenario i understand that India as a insurance market is quiet under-penetrated. This gives ample opportunities to all the players for augmenting their client base with revenues.
3. Thirdly considering the basic understanding that all the people including you and me would never fail to pay our insurance premiums despite facing severe hardships for eg. a situation like COVID-19. Apart from that the nature of the business is such that the payment is received upfront for a service which may or may not be rendered for the said time frame. This combined with the sound management provides a healthy cash flow to the company (even after considering the insurance claim payouts).
4. The company recently acquired Apollo Munich' health insurance business which will help it grow inorganically.
5. The company was recently included in the Nifty 50 Index which shows its strength and importance.
I have not made any financial or technical conclusions. Do let me know if you want them, I would be happy to provide the same.
My understanding is its a long term investment play and provides a compounding growth opportunity like the one we have witnessed and are still witnessing in the likes of HDFC Bank, Reliance and many more.
Suggestion: Hold for 5-10 years or even further and reap the benefits going forward.
Disclaimer: The above suggestion is for educational purposes only.