Key Events This Week
5 Jan: Stock opens at ₹846.05, down 1.76%
6 Jan: Mixed technical signals amid sideways momentum
7 Jan: Death Cross formation signals bearish trend
8 Jan: Downgrade to Sell rating amid technical and financial concerns
9 Jan: Week closes at ₹828.35, down 0.31% on day
5 January 2026: Weak Start Amid Broader Market Decline
The week began with LIC’s stock opening at ₹846.05, down 1.76% from the previous Friday’s close of ₹861.25. This decline was sharper than the Sensex’s 0.18% fall to 37,730.95, signalling early weakness. The volume was robust at 177,402 shares, indicating active selling pressure. The stock’s drop reflected investor caution as the broader market showed signs of volatility.
6 January 2026: Mixed Technical Signals Amid Sideways Momentum
On 6 January, LIC’s stock edged up slightly by 0.47% to close at ₹850.00, despite the Sensex falling 0.19% to 37,657.70. Technical analysis revealed a complex picture: while short-term moving averages suggested mild bullishness, longer-term indicators such as the MACD and Bollinger Bands remained bearish. The stock traded within a narrow range, reflecting investor uncertainty and a sideways momentum phase. This day’s limited price movement contrasted with the broader market’s decline, highlighting LIC’s tentative support near ₹850.
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7 January 2026: Death Cross Formation Signals Bearish Trend
The technical landscape deteriorated further on 7 January as LIC formed a Death Cross, with the 50-day moving average crossing below the 200-day moving average. This is widely regarded as a bearish signal, indicating potential long-term weakness. The stock closed marginally higher at ₹851.95 (+0.23%), outperforming the Sensex’s slight gain of 0.03% to 37,669.63. However, the Death Cross overshadowed this minor uptick, signalling increased selling pressure ahead. LIC’s valuation metrics remained attractive, with a P/E ratio of 10.55 well below the insurance sector average of 23.75, but the technical signals suggested caution.
8 January 2026: Downgrade to Sell Amid Technical and Financial Concerns
On 8 January, LIC’s stock fell sharply by 1.66% to ₹837.85, underperforming the Sensex’s 1.41% drop to 37,137.33. This decline coincided with MarketsMOJO’s downgrade of LIC’s mojo grade from Hold to Sell, reflecting deteriorating technical indicators and flat financial performance. The company’s Q2 FY25-26 results showed a 20.7% decline in Profit Before Tax excluding other income and a 17.1% drop in Profit After Tax compared to the previous four-quarter average. Despite a strong return on equity of 36% and a low PEG ratio of 0.5, the lack of earnings growth and bearish technical momentum weighed heavily on sentiment. The downgrade underscored the growing caution among investors amid persistent underperformance relative to benchmarks.
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9 January 2026: Week Closes Lower Amid Continued Selling Pressure
The week concluded with LIC’s stock closing at ₹828.35, down 1.13% on the day and 3.82% for the week. This decline outpaced the Sensex’s 0.89% drop to 36,807.62. Volume increased to 102,681 shares, indicating sustained selling interest. Technical indicators remained bearish, with daily moving averages aligned negatively and Bollinger Bands signalling downside risk. The Relative Strength Index hovered neutrally, suggesting no oversold condition yet, leaving room for further declines. The weekly and monthly MACD indicators continued to reflect weakening momentum, while the Know Sure Thing (KST) indicator showed mixed signals, bearish weekly but bullish monthly, highlighting the complex technical environment.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-05 | Rs.846.05 | -1.76% | 37,730.95 | -0.18% |
| 2026-01-06 | Rs.850.00 | +0.47% | 37,657.70 | -0.19% |
| 2026-01-07 | Rs.851.95 | +0.23% | 37,669.63 | +0.03% |
| 2026-01-08 | Rs.837.85 | -1.66% | 37,137.33 | -1.41% |
| 2026-01-09 | Rs.828.35 | -1.13% | 36,807.62 | -0.89% |
Key Takeaways
1. Technical deterioration dominates: The formation of the Death Cross and bearish MACD and Bollinger Bands on weekly and monthly charts signal increased downside risk. Daily moving averages confirm short-term weakness.
2. Downgrade to Sell reflects caution: MarketsMOJO’s downgrade on 7 January highlights concerns over flat financial performance and persistent underperformance relative to the Sensex and sector peers.
3. Valuation remains attractive but overshadowed: LIC’s low P/E of 10.55 and strong ROE of 36% suggest value, yet these metrics have not translated into positive price momentum amid sector headwinds.
4. Volume trends lack conviction: On-Balance Volume indicators show mild bearishness, indicating selling pressure is not yet overwhelming but persistent enough to weigh on price.
Overall, LIC’s stock is navigating a challenging phase with mixed signals from technical and fundamental perspectives. The bearish momentum and downgrade suggest investors should exercise caution, while valuation metrics may appeal to longer-term holders awaiting clearer signs of recovery.
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