Top trading ideas for today: Buy Godrej Industries, HDFC Life

Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

NIFTY VIEW
Nifty has indicated a lower top formation in the daily chart but still clarity of directional movement of indices is still not maintained. With F&O segment expiry just around the corner, we anticipate volatility in the indices.

BUY GODREJ INDUSTRIES
CMP: Rs 580.55
TARGET: Rs 635
STOP LOSS: Rs 550
The stock has indicated a higher bottom formation pattern in the daily chart with intraday low taking support at the previous low made at around 525 levels and currently has showed a pullback to move past the 34 WMA moving average levels to signify potential and strength to rise still further in the coming days.

BUY HDFC LIFE
CMP: Rs 502.85
TARGET: Rs 560
STOP LOSS: Rs 470
The stock has indicated a higher bottom formation in the daily chart and currently has moved past the significant 50 DMA moving average to signify strength and potential to rise further in the near future. 

HDFC Standard Life extends gain after strong debut

HDFC Standard Life Insurance Company rallied 4% to Rs 359 on the National Stock Exchange (NSE) in intra-day trade, extending its Friday’s 19% gain on debut, after the foreign institutional investor (FII) bought the stake in the company through open market.

HDFC Standard Life Insurance Company soared as much as 27% to Rs 369 on Friday on its debut listing. The share closed at Rs 345, up Rs 55 or 19% from its Initial Public Offer (IPO) allotment. The company issued shares at price of Rs 290 per share.

On November 11, 2017, The MTBJ AC Nomura India Investment Fund purchased 19.26 million shares of HDFC Standard Life Insurance Company for Rs 626 crore. The FII had bought the shares at a price of Rs 325.13 per share, the bulk deal data shows.
The name of the seller not ascertained immediately.

At 10:14 AM; the stock was trading 2% higher at Rs 352 against 0.1% decline in the Nifty 50 index. A combined 6.29 million shares changed hands on the counter on the NSE and BSE so far.

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HDFC Standard Life mops up Rs 2,322 cr from anchor investors ahead of IPO

HDFC Standard Life Insurance Company today raised Rs 2,322 crore from anchor investors, ahead of its initial public offer tomorrow.

Singapore's sovereign wealth fund Temasek, Norwegian fund Norges, Kuwait Investment, T Rowe Price, Fidelity, Blackrock and JP Morgan are among the anchor investors, according to a regulatory filing.

The shares have been allocated at the upper price band of Rs 290 apiece.

The company's executive committee and the promoter selling shareholders in consultation with the manager to the offer have finalised allocation of 80,068,600 shares to anchor investors, the filing submitted to the NSE said.

Price band for the offer has been fixed at Rs 275-290 per share.

The public issue comprises sale of 1,91,246,050 equity shares, amounting to 9.55 per cent stake, by HDFC Ltd and up to 1,08,581,768 scrips, or 5.42 per cent, holding by Standard Life Mauritius.

At present, HDFC owns 61.41 per cent stake in HDFC Standard Life and Standard Life has about 34.86 per cent stake, while the remaining is with employees and PremjiInvest.

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A guide to creating a retirement budget -Business Standard

Retirement means taking things easy. But in order to have a happy one it is never a good idea to be complacent about the planning. Finance institutions like HDFC Life offer tailor-made innovative pension plans to provide financial security for a happy retired life without compromising on living standards.

Experts, in fact, recommend that retirement planning should start from the day you start earning. Presenting six steps to help retire in comfort.

1. Budget for retirement

Knowing post-retirement expenses is crucial to retirement planning.

Two ways to do it:

a. Estimate the retirement fund
Every individual needs roughly about 70% to 80% of pre-retirement gross income. Sooner one starts, the better it is. That way even after the paychecks stop coming, life doesn’t.

It’s a good idea to consult a financial advisor on how to create a monthly budget. Many reputed financial firms, like HDFC Life, have formulated retirement expense worksheets, so the help needed to pencil out a budget for retirement is just a click away.

b. Create a detailed monthly budget for retirement
Some expenses, such as those on clothing and entertainment, come down. Others, such as transportation, medicine and insurance, go up. Typically, during the initial retirement years, people spend more on travel and leisure activities, and later, more on health. It is important to note that everyone’s situation is different, so what works for one individual may not work for another.

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2. Start an SIP 
3. Get a life insurance 
4. Allocate a sizeable portion of any raise to saving
5. Factor in inflation and surprise expenses
6. Don't dip into corpus before you retire

Top 5 biggest life insurance myths

There are several misconceptions about life insurance. It is a popular notion that older or married individuals with kids should invest in one, or that the insurance only offers post-death benefit. Here we debunk some of the biggest life insurance myths… 

Life insurance policy is critical to any financial planning. Yet it is never prioritized and is often considered complicated to decode. But it is always a good idea to invest in life insurance, more so sooner than later. Especially, since not having one when you need it can be devastating.

While there are quite a few common myths about life insurance, here is a list of the five biggest ones.

Myth 1: Single, without dependents. I don't need coverage
Myth 2: Too young to think about coverageMyth 3: Only men need life insurance
Myth 4: Insurance is of no use unless you die 
Myth 5: Better to invest the money rather than lock it up in life insurance of any kind

Read More

Top 5 biggest life insurance myths

There are several misconceptions about life insurance. It is a popular notion that older or married individuals with kids should invest in one, or that the insurance only offers post-death benefit. Here we debunk some of the biggest life insurance myths… 

Life insurance policy is critical to any financial planning. Yet it is never prioritized and is often considered complicated to decode. But it is always a good idea to invest in life insurance, more so sooner than later. Especially, since not having one when you need it can be devastating.

While there are quite a few common myths about life insurance, here is a list of the five biggest ones.

Myth 1: Single, without dependents. I don't need coverage

At the risk of sounding morbid, singles too need enough coverage to cover the costs of personal debts and medical bills. If uninsured, they could leave unpaid expenses for families to deal with. Even if single people are not saddled with such dire situations, it is a good way to leave a legacy to some cause. Also, many policies allow insurers to purchase additional coverage in the future. For example, HDFC Life offers Life Stage Protection – under Life option where the insurer can increase the insurance cover on certain key milestones of life like marriage, child birth without fresh medical test. So, the policy can be continued with changes if and when he or she decides to have a family.

Myth 2: Too young to think about coverage

There is no such thing as too young for life insurance. If you earn a salary, you might as well have insurance. Several independent studies and the Insurance Regulatory and Development Authority of India (IRDAI) observe that the insurance sector is a colossal and growing at a speedy rate. However, although the awareness about life insurance is increasing, the Indian youth is still misinformed about the cost.(Read More)