What should investors do with GICRE?

The stock of GICRE has jumped over 10% amid strong buying activity.

The insurance sector stocks have seen strong buying interest lately at lower levels. The growing prospect for the insurance industry in the field of general insurance has been the main driver for the stock recently. The health and motor segments have seen a strong boost post COVID and are expected to witness double-digit growth. Meanwhile, the stock of General Insurance Corporation of India (NSE Code- GICRE) has surged over 10% amid strong buying sentiment and huge volumes. With this, the stock has topped the chart of top gainers from the Nifty 500 universe.

In its recent quarterly result, net profit jumped over 84% YoY to Rs 1859 crore in September 2022 as against Rs 1010 crore in the corresponding quarter of the previous financial year. On the technical chart, the stock has registered a breakout from its consolidation pattern after forming a base Such breakout is considered positive for the medium term. All its moving averages are in an uptrend and indicate bullishness. The volume recorded today has been greater than the 50-day average volume which shows strong buying interest. Also, the OBV has seen a spike and lies at its peak. The 14-period daily RSI (73.06) is in the super bullish territory while the MACD has demonstrated a bullish crossover. The TSI and KST indicators also display bullishness. The Relative Strength (RS) shows an outperformance against the broader market. In a nutshell, the stock ticks across a bullish setup and we can expect a bullish trend from here on.

On a YTD basis, the stock is up 14% and has outperformed most of its peers. Interestingly, the DIIs have increased their stake in recent quarters. Long-term investors as well as momentum traders should keep a close watch over this stock in times to come.

General Insurance Corporation of India is a reinsurance company that provides reinsurance to direct general insurance companies to domestic and international companies.