BUY HDFC LIFE INSURANCE COMPANY | TARGET: Rs 780 | STOP LOSS: Rs 620
HDFC Life has corrected over 7 per cent from the recent high of Rs 731 in the last couple of trading sessions amid block deals that took place at a discounted rate. Currently, the stock is placed at its strong demand zone as historically these levels have provided firm consolidation to the counter. Even, the cluster of moving averages is expected to provide a cushion to the fall and gradual recovery could be expected from here on. The sloping trend-line is acting as strong support to the counter, and even the technical indicator, 14 period RSI seems to reverse its trend near the oversold region. All these are the early sign of trend reversal and one may accumulate the stock from a short to medium-term perspective.