Quant Pick - LIC Housing Finance - ICICI Direct

Recommendation

Buy LIC Housing Finance in range of Rs. 325-335
Target: Rs. 390
Stop Loss: Rs. 297
Time frame: Three months

Derivatives & Quantitative Outlook

Broader markets have shown a sharp up move in the last two months due to one of the highest foreign flows. In November, FIIs have bought over Rs. 65000 crore, which is the highest ever inflow seen in a month. While the Nifty has shown significant recovery and moved to lifetime highs, midcap and small cap stocks are witnessing a catch up exercise. In the NBFC space, LIC Housing Finance, which has been a relative underperformer, is likely to witness fresh momentum in the days to come.

The open interest in the stock is one of the highest seen in it in almost five years. Due to MSCI rebalancing, the stock has witnessed noteworthy short additions. As the event is over, we expect gradual closure of these positions to be seen, which is likely to take the stock higher.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_LICHF_Dec20.pdf

Shares of LIC HOUSING FINANCE LTD. was last trading in BSE at Rs.338.65 as compared to the previous close of Rs. 330. The total number of shares traded during the day was 486041 in over 10487 trades.

The stock hit an intraday high of Rs. 342.4 and intraday low of 326. The net turnover during the day was Rs. 164340392.

Source : Equity Bulls

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