Confused about which stock to buy from the Life Insurance sector? We will help you out!

The life insurance sector of India has come into the limelight since the pandemic as more and more people opt for life insurance cover for their dear ones. The data suggested that new clients have been added by the life insurance companies and premiums receivables have been increased significantly post Covid.

We’ll now move to the meat of the matter and check which stock out of these three looks technically sound?

First, let’s check out the performance of these stocks: HDFC Life has gained 5.76% on a YTD basis and in the last three months it has advanced 6.22%, while SBI Life has jumped 28.48% on a YTD basis and 2% in the last three months. ICICI PruLife has risen 32.15% on a YTD basis and -1.87% per cent in the last three months.

From the above data, we have observed that ICICI PruLife has been the top performer on a YTD basis but it has been a performer for the short term. HDFC Life has done well in the short term.

The Life insurance stocks have corrected slightly as all of them traded below their all-time high. HDFC Life is down 8% from its high, while SBI Life and ICICI PruLife are down by 9.1% and 9.2% respectively. Only HDFC life is currently trading above its key moving averages, whereas SBI Life and ICICI PruLife are trading below its 50-DMA. SBI Life is trading below its 20-DMA, showing short term weakness. The RSI of all three is at 57, 45 and 54 respectively. Volumes in HDFC life are increasing steadily in the last few trading sessions while volumes are flat in other stocks as they are consolidating.

Thus, from the above analysis, we can conclude that traders can look for opportunities in HDFC Life for the short to medium term. One can think about investing in such good quality life insurance stocks as the future for the insurance sector is bright in India.