Insurance Sector Rally Ahead? SEBI RA Rohit Mehta Flags Bullish Patterns In Seven Stocks

LIC, HDFC Life, SBI Life, and others are nearing technical breakout levels. The analyst flags key support and resistance levels for leading insurance stocks.

Several leading insurance companies are positioned near critical support and resistance levels that could trigger significant price moves, according to SEBI-registered research analyst Rohit Mehta.

Mehta highlighted key technical zones across a suite of insurance firms, including LIC, HDFC Life, SBI Life, ICICI Prudential Life, ICICI Lombard, Star Health, and New India Assurance, noting that recent weekly chart patterns indicate bullish setups supported by strong bases and potential breakout points.

Life Insurance Corporation (LIC)

LIC faces strong resistance at its all-time high of ₹1,222.55. Mehta believes that a breakout above this level can trigger a new rally, adding that traders must keep an eye on ₹992.20 for a volume breakout. 

Support zones are seen between ₹734.95–₹788.75 and ₹522.85–₹579.80. 

HDFC Life Insurance 

HDFC Life is holding near support at ₹739.50–₹754.95, showing bullish cup-and-handle formations. He adds that the stock needs to sustain ₹758 for further gains. 

SBI Life Insurance 

SBI Life trades above support at ₹1,663.95–₹1,689.05 and nears resistance at ₹1,932.40, with a large cup pattern signaling potential upside. A breakout above this level can lead to fresh highs, Mehta adds. 

ICICI Prudential Life Insurance

ICICI Prudential Life hovers above support ₹605.65–₹626.75, which has been a strong accumulation zone. 

He sees resistance at ₹796.95 and a big cup pattern forming. A breakout above this could lead to further upside. 

ICICI Lombard General Insurance

ICICI Lombard has seen support at ₹1,613.70–₹1,679.05 multiple times. The stock has been consolidating since its recent correction.

It now faces resistance at ₹2,301.50, and a rounded bottom breakout suggests further upside. 

Star Health Insurance 

Star Health holds support at ₹456.65–₹472.75 with resistance near ₹644.35–₹657.75. 

Mehta notes that the stock needs to hold ₹470 for potential upside. Resistance is seen at its all-time high of ₹940.65, showing a cup-like recovery.

New India Assurance Company

New India Assurance shows support at ₹88.20–₹97.20 and ₹182.67–₹190.91, with key resistance at ₹221.81. A clean breakout above this level is likely to trigger a strong upmove. 

He pegs the long-term target at ₹365.70 as a double cup pattern indicates potential gains.

The insurance market in India has demonstrated substantial growth throughout the last five years, and Mehta predicts it will continue to expand rapidly going forward.

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