Stake buy: Strategies for ICICI Bank, ICICI Lombard General Insurance

Technically, ICICI Bank is poised for an upside up to 10 per cent, while ICICIGI must sustain over the 200-DMA

Shares of ICICI Lombard General Insurance Company conquered the 200-day moving average (DMA) after January this year, following ICICI Bank announcing buying 4 per cent additional stake in the insurance company.

The overall trend of ICICI Lombard General Insurance has not been lucrative since early 2022. The price action has tumbled 5 per cent so far this year, post plunging 11 per cent the previous year. 

Meanwhile, shares of ICICI Bank are trading closer to its all-time high, with sentiment continues to foresee higher upside. 

On Tuesday, while ICICI Bank shares traded sideways by rising 0.25 per cent, the underlying trend remains on highly upward objective. ICICI Lombard General Insurance Company seen a cut of 1.50 per cent. 

Here’s are the trading strategies amid stake buy:-

ICICI Bank Ltd (ICICIBANK)

Likely target: Rs 1,010 and Rs 1,060

Upside potential:  5% - 10%

Shares of ICICI bank are struggling to withstand the selling pressure emerging in the range of Rs 960 to Rs 950 level since December last year. A robust close supported by strong volumes could trigger fresh upside in the stock.

A breakout would then initiate a bullish rally of a “Golden Cross”, represented on the daily chart. As of now, the price action is supportive of the optimistic bias.

The breakout might rally towards Rs 1,010, followed by Rs 1,060 levels, as per the set up on the daily chart. The support for the current upward bias stands in the rage of Rs 20 to Rs 930 levels. CLICK HERE FOR THE CHART

ICICI Lombard General Insurance Co Ltd (ICICIGI)

Outlook: 200-DMA, a key parameter

While the broader trend looks downward, the “stake buy” could steer a reversal if the stock decisively holds the 200-day moving average (DMA) set at Rs 1,160 levels. 

Stock has failed to sustain over the 200-DMA since the last November, which led to a stronger bearish signals. The subsequent hurdles for the stock are at Rs 1,290, 1,330, and Rs 1,370, levels that the stock failed to cross. 

Technically, only if the stock defends the 200-DMA, the price action may then start to develop accumulative stance.  CLICK HERE FOR THE CHART