Stock to Buy, LIC Share Price Target: The stock market has rebounded, with the headline indexes gaining nearly 2 per cent each. The BSE Sensex jumped 2 per cent, or 1,536 points, to 78,581, while the Nifty 50 index climbed 1.77 per cent, or 414 points, to 23,851.45.
Are you looking for stock investment recommendations amid this uptrend? A domestic brokerage has recommended a major large-cap insurance provider’s stock with a short-term horizon.
Analysts at Anand Rathi Brokerage have recommended buying LIC shares for a target price that implies up to 22 per cent returns from Wednesday’s (April 16) closing price.
Is the LIC stock showing signs of a reversal?
After hitting a 52-week high of ₹1,222, LIC of India (LICI) witnessed a sharp correction, dropping nearly ₹500, or 41 per cent. However, recent price action suggests the worst might be over, the brokerage said.
According to the brokerage’s technical analysis, the stock has started forming a strong base in the ₹750–₹800 range over the past 2–3 weeks.
“During this consolidation phase, an inverse Head & Shoulders pattern has formed, indicating a potential reversal,” the brokerage noted, adding that this is further supported by a bullish divergence on the daily RSI, which typically indicates waning selling pressure and a possible shift in momentum.
Based on these patterns, the brokerage suggested that investors consider initiating long positions in the large-cap stock between levels of Rs 780 and Rs 805.
What is the brokerage’s target for LIC stock?
Anand Rathi Brokerage has recommended buying the insurance sector stock with a six-month target of Rs 975 and a stop loss at Rs 699. The target suggests a potential upside of 22.28 per cent from Wednesday’s closing.
LIC vs Headline Indices: Past performance
The LIC stock has plummeted 16 per cent in the last one year, while the 50-scrip basket has gained 8.36 per cent in the same period. Meanwhile, the BSE Sensex index surged 8.31 per cent in the same horizon.
The stock which is part of the Nifty Next 50 basket, has increased 3.88 per cent over the past year.
