LIC share price edges up on Day 2. Buy, sell or hold?
Premium- LIC share price: Those who have LIC shares in their portfolio are advised to hold the stock maintaining stop loss at ₹870 apiece levels, say stock market experts
LIC share price: After debuting at over 8 per cent discount on Tuesday, Life Insurance Corporation (LIC) share price today edged higher in early morning deals. LIC share price today opened with an upside gap of around ₹10 per share and went on to hit intraday high of ₹891 levels. However, LIC shares soon retraced from the intraday higher after the profit booking trigger at Wednesday highs.
According to market experts, those who had applied for the public offer for listing premium can continue to hold the stock with stop loss at ₹870 and wait for breakout above ₹920 apiece levels.
Expecting limited downside in LIC share price from current levels, Parth Nyati, Founder at Tradingo said, "Downside in LIC shares would be limited due to low float nature of the newly listed shares. Weak listing of LIC shares was mainly due to high volatility in the secondary markets and negative stock market sentiments. The Life Insurance Corporation or LIC is synonymous with insurance in India and it enjoys a phenomenal brand recall. Apart from this, LIC has many competitive advantages over its peers like strong brand value, large scale of operations, huge LIC agents' network and strong distribution network."
Advising LIC shareholders to hold the stock further, Ravi Singhal, Vice Chairman at GCL Securities said, "Those who have LIC shares in their portfolio are advised to hold the stock maintaining stop loss at ₹870 apiece levels. LIC share price may become bullish once it gives breakout at ₹920 levels on closing basis. However, if it fails to give breakout in next few sessions, there are chances of profit-booking trigger leading to sharp downside in the stock. So, fresh investors are advised to wait for few sessions."
On his suggestion for fresh investors, Ravi Singhal of GCL Securities said, "Fresh investors are advised to wait for few sessions as LIC shares may give breakout above ₹920 on closing basis or in case of not giving breakout, profit-booking trigger may lead to sharp downside in the stock. So, fresh investors should wait for the profit-booking and take fresh position at around RS 780 to ₹800 apiece levels maintaining stop loss at ₹735 apiece levels."
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.