Since January 2024, the Indian insurance sector has seen steady growth. In general insurance, growth was about 15%, mainly driven by strong demand in health and motor insurance. Companies such as HDFC Life, SBI Life, and ICICI Lombard performed well in the stock market due to strong new business growth and better profit margins.
On the charts, insurance stocks are trading above key moving averages, showing positive investor sentiment. Overall, the insurance sector continues to grow steadily and offers a relatively safe investment option in a changing market. There is focus on this sector post recent price and correction. Currently HDFC Life and ICICI Lombard are strong candidates to be included in the investable watchlist.
HDFC Life: Breaking out from Accumulation – Bullish Continue pattern
HDFC Life price has gained by 35% from its Jan 2025 bottom. It moved from a level of ₹580 to ₹790 by May 2025. Now, recent price action shows the momentum should continue and it could signal fresh buying interest and the resumption of previous uptrend.
Key Signs Indicating HDFC Life’s Potential Upside
- Bullish Continue Pattern Breakout: The stock is breaking out from a recent consolidation and Cup & handle pattern signifying price could move up.
- 200-Day Moving Average: The stock price has broken the 200DMA again after March 2025 which indicates there could be a trend reversal.
- Increased volume: Increased volume of shares every time the price increases can indicate that a trend has changed.
- Increasing RSI Momentum: The Relative Strength Index (RSI) is over 50 and is indicating strength, confirming that the share could move up.
Outlook for HDFC Life
HDFC Life stock price started falling from ₹760 and made bottom near ₹580 in January 2025. Post that price started forming higher high, higher low pattern. From that January panic bottom, it has formed more than one bullish chart daily, such as rising channel, cup and handle, and as well many daily candles above the 200-day moving average. In addition, the 14-period RSI shows strength moving into the bullish zone suggesting HDFC Life can move.
ICICI Lombard: Ready for a Potential Up move once again
Once ICICI Lombard price peaked at ₹1,590 in July 2024, investors saw a price and time correction. As price went down to create a panic bottom around ₹800. The stock went up over 140% from March 2025 to May 2025. The stock has been consolidating very tightly and not trading with volume. Conversely, the stock now has bullish chart patterns and signals on the daily chart that indicate the trend can be bullish again.
Key Technical Levels Favouring ICICI Lombard’s Reversal
- Bullish Reversal Pattern: The stock was in a time correction but recently it has given breakout from Inverted Head and shoulder pattern, possibly entering upward trend again.
- 200-Day SMA: After the 30% correction the stock has found support, and prices remain above its 200SMA which is a classic sign of positive sentiment, and a trend reversal.
- Volume Surge Confirming the Breakout: The increase in price, and volume mentioned earlier, demonstrated strong participation, and the current lower volume in consolidation, and modest price decline increase the confidence.
- RSI Chart and Price Direction: The 14 period RSI moved above 55 indicating bullish divergence, and further momentum for price moves upward.
Outlook of ICICI Lombard
ICICI Lombard has been an underperformer, delivering a negative return of 30% from September 2024 to March 2025. Now, it has formed bullish reversal pattern, which is usually taken as a sign that a fresh rally could be starting. It has also gone above the 200-day moving average. The 14-period RSI shows strength and is in the bullish zone. This indicates ICICI Lombard could go on an upswing in the near future.
Final Take
The Insurance industry in India is slowly but surely evolving. Both HDFC Life and ICICI Lombard provide reasonable technical indications for the probability of a bullish trend in the insurance space. These stocks have bullish chart signals, increasing strength in the RSI level, and important breakouts, all indicating strength and positive trends.
Disclaimer:
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
As per SEBI guidelines, the writer and his dependents may or may not hold the stocks/commodities/cryptos/any other assets discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
Kiran Jani has over 15 years of experience as a trader and technical analyst in India’s financial markets. He is a well-known face on the business channels as Market Experts and has worked with Asit C Mehta, Kotak Commodities, and Axis Securities. Presently, he is Head of the Technical and Derivative Research Desk at Jainam Broking Limited.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives and resources, and only after consulting such independent advisors if necessary.