Rohan Patil from Bonanza Portfolio has suggested short term BUY Call for HDFC Life. Patil has suggested target price of Rs 650 for HDFC Life offering nearly 10 percent from current price of the stock.

HDFC Life has been on radar of many market analysts and the stock is also considered as a good BUY opportunity for long term. HDFC Life has recently crossed major resistance levels and the stock is looking strong on the technical charts.

As per Patil, the stock surpassed the multiple resistance zones around Rs 572 –581, which eventually confirmed a falling wedge pattern breakout on the daily interval. The recent leg of strong up-move is also supported by strong volumes and it also resembles a strong consolidation breakout.

Prices are trading above the 21 and 50-day exponential moving averages on the daily chart. Momentum oscillator RSI (14) has witnessed a horizontal trendline breakout above 55 levels and is currently reading near 60 levels with positive crossover on the cards.

All trades should be carried out with strict Stop Loss. In case the trade doesn’t happen as per expectations, it is good to exit the trade if the call is in profit.