Key Events This Week
2 Feb: Stock opens at Rs.803.75, down 2.51% amid broader market weakness
3 Feb: Intraday high of Rs.831.6 with a 4.34% daily gain
4 Feb: Mixed technical signals as momentum shifts to mildly bearish
5 Feb: Q3 FY26 results reveal profit surge but margin pressures
6 Feb: Intraday high of Rs.879.85 and surge in institutional and derivatives activity
2 February 2026: Weak Start Amid Market Decline
LIC opened the week at Rs.803.75, declining 2.51% on the day, underperforming the Sensex which fell 1.03%. The stock faced selling pressure amid a broad market sell-off, with volume at 73,457 shares. This initial weakness set a low base for the week’s subsequent recovery.
3 February 2026: Intraday High and Strong Rebound
On 3 February, LIC rebounded sharply, gaining 4.34% to close at Rs.838.65. The stock hit an intraday high of Rs.831.6, outperforming the Sensex’s 2.63% gain. This surge was supported by active trading volume of 224,762 shares and reflected short-term technical strength as the price moved above its 5-day and 20-day moving averages. Despite this, LIC slightly lagged the Finance/NBFC sector’s 3.97% gain, indicating room for further sector-relative improvement.
4 February 2026: Mixed Technical Signals Amid Volatility
LIC’s price closed at Rs.835.00, down 0.44% from the previous day, with a volatile intraday range between Rs.816.40 and Rs.842.90. Technical indicators presented a complex picture: the stock transitioned from a bearish to a mildly bearish trend, with weekly MACD remaining negative but monthly MACD improving. The RSI hovered neutrally, while the Know Sure Thing (KST) indicator showed bearish weekly but bullish monthly signals. These mixed signals suggested consolidation rather than a clear trend reversal.
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5 February 2026: Earnings Report and Bearish Technical Shift
LIC released its Q3 FY26 results, reporting a profit surge that masked margin pressures amid intensifying market share competition. Despite the positive earnings headline, the stock faced bearish technical momentum, closing at Rs.840.45 with a modest 0.65% gain. Technical indicators deteriorated, with daily moving averages turning bearish and the MACD remaining negative on the weekly chart. The stock’s mojo grade was downgraded to Sell, reflecting growing caution among investors.
6 February 2026: Strong Rally with Institutional and Derivatives Surge
LIC closed the week on a high note, surging 7.26% to Rs.901.50, reaching an intraday peak of Rs.879.85. The stock outperformed both the insurance sector and the Sensex, which were largely flat or negative. Trading volume exploded to 1,765,959 shares, driven by significant institutional interest and a sharp rise in derivatives activity. Open interest in options surged by 44.47%, with call options at the 880 and 900 strike prices dominating market interest. The stock traded above all key moving averages except the 200-day, signalling strong short- to medium-term momentum.
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| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.803.75 | -2.51% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.838.65 | +4.34% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.835.00 | -0.44% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.840.45 | +0.65% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.901.50 | +7.26% | 36,730.20 | +0.10% |
Key Takeaways
Strong Weekly Outperformance: LIC’s 9.35% weekly gain far exceeded the Sensex’s 1.51% rise, highlighting robust demand and positive momentum in the stock despite broader market volatility.
Technical Momentum Shift: The stock transitioned from bearish to mildly bearish midweek before rallying strongly on Friday, supported by gains above key moving averages and a surge in volume and derivatives activity.
Institutional and Derivatives Interest: The sharp increase in traded volume and open interest, especially in call options near the 900 strike, indicates growing bullish positioning among institutional and speculative traders.
Fundamental Caution: Despite the price rally, LIC’s Mojo Score remains at 40.0 with a Sell grade, reflecting concerns over valuation and margin pressures highlighted in the Q3 FY26 results.
Volatility and Liquidity: Elevated intraday volatility and strong liquidity support active trading, but declining delivery volumes suggest a shift towards short-term speculative interest rather than long-term holding.
Conclusion
Life Insurance Corporation of India demonstrated a compelling rebound and strong price appreciation during the week of 2–6 February 2026, driven by a combination of technical momentum, institutional interest, and active derivatives trading. While the stock outperformed the Sensex and its sector significantly, the fundamental rating remains cautious, reflecting margin pressures and valuation concerns. Investors should monitor whether the recent bullish momentum can be sustained amid mixed technical signals and evolving market dynamics. The surge in call option activity ahead of the 24 February expiry suggests market participants are positioning for further gains, but the decline in delivery volumes warrants attention to the quality of buying. Overall, LIC remains a key large-cap insurance stock exhibiting a complex interplay of positive price action and fundamental caution.
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