Buy LIC Housing Finance , target Rs 565, ICICI Direct

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ICICI Direct research report on LIC Housing financeIn the current current Nifty recovery recovery, housing housing finance finance companies companies started started to participate participate. After seeing a round of profit booking, LIC Housing is also seeing resurgence of buying interest in the cash segment coupled with short covering trend in futures segment. Hence, we recommend buy on the stock with a target price of | 565 z In the futures segment, post the Q4 results, as the stock tumbled 6%, OI in the stock increased 15% to 9.6 million million shares suggesting suggesting short creation creation. With the stock moving above the last key shorting shorting level of | 476, the short covering trend is picking up in the stock. As we are approach closer to the June expiry, this covering trend is likely to gain further z The stock witnessed two-month high delivery volumes on May 26 at | 460 levels. Since then, it has been in a gradual gradual uptrend uptrend. Hence, declines declines towards towards these levels are likely to attract attract buying z In options segment, highest Call base is at the 480 strike for the June series. Closure of positions has been observed in this strike. This is likely to propel a short covering trend in the stock, which could take it higher z From a short-term standpoint, as long as the stock is holding (| 472-476) the short block region, it is likely to witness continued upside fuelled by short covering.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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