About the company:
ICICI Bank (NS: ICBK ) is a large private sector bank in India offering a diversified portfolio of financial products and services to retail, SME, and corporate customers. The Bank has an extensive network of branches, ATMs, and other touch-points. The stock is trading at a discount of 2.40% from the all-time high / 52- week high level. The 52-week high and low range is Rs 717 – Rs 334.
One week time frame: (Fig 1)
ICICI Bank stock has broken out of Ascending Triangle pattern on the weekly time frame chart. It made an all-time high of Rs 717 and has retraced and taken support at 680 levels. Relative Strength Index (or RSI) is heading towards 70. Moving Average Convergence Divergence (or MACD) indicator is above the signal line, supporting positive momentum. Currently, the volumes are below average, but we expect the stock to move higher with the help of higher volumes. Long-term investors should invest now, keeping a stop loss of Rs 645 on a weekly closing basis.
One day time frame: (Fig 2)
On a daily time frame, since May 2021, the stock has made higher highs and higher lows and has taken support on the 50-day EMA (Exponential Moving Average) line after every pullback. On July 23, 2021, the share crossed a critical resistance level of Rs 673 and has been able to stay above this level. Hence, now this level acts as essential support for the stock on a daily timeframe. This upward movement is also accompanied by above-average volumes that depict inherent strength. The RSI level of 50 has acted as a basic support level for the stock since May 2021. It shows positive momentum. Medium-term investors should enter with a strict stop loss of Rs 667.
We expect the share to maintain positive bias and move higher. Short-term traders should trade by keeping Rs 689 as stop loss on a daily closing basis.
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