Hello friends!
I am Gaurav, and I have spent a lot of time in stock market and forex trading. From my experience, I understand chart reading and real-time price action very well. Today I am going to tell you about a stock in which a strong trade setup is visible.
Today’s stock is – LIC Housing Finance Ltd. (LICHSGFIN)
This company is one of the top housing finance companies in India, which provides home loans and housing-related financial services. Due to the brand trust of LIC, its market position is very strong. But today we will analyze its chart and see where it can give a smart entry.
Chart Analysis of LIC Housing Finance
Inside the chart you can see that the price is trading near an important demand zone (green area). I have highlighted this zone, where there are strong chances of price reversal.
Thing to understand:
- When the price comes in this demand zone and there is red to green candle formation,
- Only then should we take entry – meaning we should buy the stock.
- Stop Loss: It will be the low of the entry candle (on which the entry was made).
- Target Levels: I have marked Fibonacci and structural resistance levels above the chart:
613.10
625.25
664.60
Trade Summary:
Buy Zone: 561–575 (green candle confirmation inside demand zone)
Stop Loss: Entry candle low
Targets: Step by step above levels
This is a patience-based trade setup, in which entry is to be taken as soon as the signal is received. Entry should not be taken without confirmation.
Short Overview of LIC Housing Finance Business Model:
- Core Business: Housing loans for individual buyers and developers.
- Revenue Sources: Primary revenue from interest income and processing fees.
- Strengths: High credibility due to support from LIC.
- Challenges: Risk of rising interest rates and NPAs.
Final Words:
Keep following me for more such profitable trade setups. You can ask me your queries directly by joining my Telegram channel and YouTube channel.
How did you like this analysis? Do let me know by commenting! 😊
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