HDFC Life Q1 Preview: Bullish Momentum Still Intact, SEBI RAs Flag Key Levels To Watch

HDFC Life shares gained 1% ahead of its first-quarter (Q1FY26) results on July 15. 

The stock is sustaining above the key breakout zone, indicating strength for potential upside continuation, according to SEBI-registered analyst Rohit Mehta.

He identified support at ₹740–755, followed by the next support level at ₹650–665. The stock has seen a multi-year cup & handle breakout in the past. Currently, bullish momentum is intact above ₹755 support, Mehta added.

He noted that promoter shareholding held stable from 50.32% in December 2024 to 50.32% in March 2025. Meanwhile, Foreign Institutional Investors (FIIs) holding decreased from 25.14% to 24.96% and Domestic Institutional Investors (DIIs) holding increased from 13.72% to 14.10%.

Mehta highlighted that HDFC Life has consistently maintained a healthy dividend payout ratio of 27.4%. On the other hand, the stock is trading at a high valuation of 10.1 times its book value, and the company has delivered a modest return on equity of 10.2% over the past 3 years. Mehta also noted that the earnings include a significant other income component of ₹366 crore, which may not be sustainable.

In the previous quarter, HDFC Life reported a 37% rise in operating profits, while sales fell by 13.73% year-on-year (YoY).

Meanwhile, analyst Vijay Kumar Gupta highlighted that the stock is currently at a critical juncture after a short-term correction. Price has approached cloud support, and the Commodity Channel Index (CCI) suggests potential exhaustion of selling pressure. He awaited a clear reversal signal for confirmation.

Recent charts show a minor downtrend from the ₹790 zone; currently testing near Tenkan and Kijun support. The CCI dropped to -134.94, nearing deep oversold territory, which shows that a reversal is likely if the CCI crosses above -100. The On-Balance Volume (OBV) is trending flat at 639M, with no major signs of accumulation or distribution.

Gupta identified support between ₹745–₹750, with resistance between ₹778–₹790 zone (recent swing high).

HDFC Life reported strong growth in APE (Annual Premium Equivalent) and VNB margins in June, driven by better cost efficiencies and ULIP revival. Among larger macroeconomic developments, the Reserve Bank of India’s (RBI) stance to pause rate hikes benefits insurance players like HDFC Life due to potential bond gains and sustained investment income. Regulatory changes by IRDAI to simplify product approval and expand micro-insurance reach are also favorable for HDFC Life’s long-term growth strategy. 

Additionally, the completed HDFC–HDFC Bank merger provides more substantial distribution synergies to HDFC Life, improving reach in semi-urban and rural markets, the analyst added.

What Next?

For positional traders,  Gupta suggests watching for a bounce above ₹770 for confirmation, with a stop loss of ₹744 and a short-term target at ₹785–₹795. He cautioned that a breakdown below ₹740 could shift bias negative toward ₹715–₹725 support line 

Gupta believes that HDFC Life is fundamentally a strong player showing temporary correction. Long-term outlook remains positive with scope for a bounce near current levels.

HDFC Life shares have risen 24% year-to-date (YTD). 

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