Bet on this private bank in your trading activities
About the company:
ICICI Bank (NS 🙂 is a leading private sector bank in India offering a diverse portfolio of financial products and services to individuals, SMEs and businesses. The Bank has an extensive network of branches, ATMs and other points of contact. The stock is trading at a 2.40% discount from the all-time high / 52 week high. The high and low range over 52 weeks is Rs 717 to Rs 334.
One week delay: (Fig 1)
The action of Bank ICICI broke the pattern of the Ascending Triangle on the weekly period chart. It hit an all-time high of Rs 717 and retraced and took support at 680 levels. The Relative Strength Index (or RSI) is heading towards 70. The Moving Average Convergence Divergence Indicator (or MACD) is above the signal line, supporting positive momentum. Currently the volumes are below average, but we expect the inventory to increase with the help of higher volumes. Long term investors should invest now, keeping a stop loss of Rs 645 on a weekly close basis.
One day delay: (Fig 2)
On a daily basis, since May 2021, the stock has hit higher highs and lows and has taken support from the EMA (Exponential Moving Average) line 50 days after each withdrawal. On July 23, 2021, the stock broke through a critical resistance level of Rs 673 and was able to stay above that level. Therefore, this level now acts as an essential support for the stock on a daily timescale. This upward movement is also accompanied by above-average volumes which exemplify the inherent strength. The RSI level of 50 acts as a base support level for the stock since May 2021. It shows positive momentum. Medium term investors are expected to enter with a strict stop loss of Rs 667.
We expect the stock to maintain a positive bias and rise. Short term traders should trade keeping Rs 689 as a stop loss on a daily close basis.