Technical Picks to Keep an Eye On: LIC Housing Finance and KPIT Technologies

Technical analysis identifies LIC Housing Finance and KPIT Technologies upside potential stocks. Both stocks have displayed promising structures and technical setups, including price volume contraction, and the potential to bounce back and breakout. Currently trading at Rs 653.25 and Rs 1,535.45 respectively, their price aligns with positive signals from technical indicators like RSI and ADX, suggesting a likely breakout scenario.

LIC Housing Finance Ltd

The daily chart of LIC Housing Finance Ltd

On the daily chart, LIC Housing Finance is presently showing a promising picture; the stock price is trading in a tight range. The stock price may resume its strong momentum-up in the coming trading sessions if it crosses and closes above the 52-week high with the support of decent volume compared to the current volume. Volumes are dry right now and likely to rise soon.

Those considering a possible trade in LIC Housing Finance might purchase the stock at the current price with a stop loss of Rs 625 on a closing basis and aim to capitalize above the 52-week high.

The stock price is currently trading at a 50-day EMA, suggesting it is likely about to turn short-term bullish once more after seeing a volatility jump. The stock appears quite neutral when one looks at the Relative Strength Index, which is now trading at 54.69. The ADX of 13 indicates the present state of price momentum, which is moving with a low momentum.

In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 600. The minor upper resistance is 52-week high and if the stock closes above 52-week high consecutively, then it may consistently trade above current levels.

LIC Housing Finance Ltd. engages in the provision of loans for purchase, construction, repairs, and renovation of houses to individuals, corporate bodies, builders, and co-operative housing societies.

KPIT Technologies Ltd

The daily chart of KPIT Technologies Ltd

KPIT Technologies Ltd’s current performance is indicated by a favorable technical setup. The company’s shares are now trading at Rs 1,535.45 and may continue the uptrend from the current level if it breaks the upper resistance which is marked on the chart. The stock price is currently trading slightly above the 50-day EMA.

Those interested in possible trade in KPIT Technologies could purchase the stock at the present price, setting a stop loss below the 50-day EMA at Rs 1,450, and aim for a target price at a 52-week high.

The stock is trading around its all-important moving averages, and it is expected breakout from current consolidation. The Relative Strength Index is trading near neutral levels at 59.76. This implies there may be potential for an increase in stock price strength. The ADX, now around 17, shows low momentum and directional strength.

The level of Rs 1,400 serves as a crucial indicator for corrective movement, and the overall market structure favors traders if the stock sustains the level of Rs 1,560 and trades above it.

KPIT Technologies Ltd. engages in the provision of software for the automobile and mobility industry.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.