Chart check: How to trade HCL Tech and ICICI Bank post their Q4 results?

Both the stocks are in news on Monday after the companies announced their January - March 2020 numbers over the weekend.

ICICI Bank Ltd (ICICIBANK)

Likely target: Rs 635

Upside potential: 5%

After dipping below the 100-day moving average (DMA), the counter has displayed a firm reversal from Rs 530 to Rs 525 levels. This move needs to scale above 50-DMA, which is currently placed at Rs 600 levels in a decisive manner to embark on a new breakout. If that happens, a rally towards the next resistance of Rs 635 cannot be ruled out. The Relative Strength Index (RSI) has made a formation of Inverse Head and Shoulder, with a breakout above 50 value. If the counter gives a firm close where the RSI is able to hold 50 value, the strength may add more momentum to the prevailing upward bias, as per the daily chart. CLICK HERE FOR THE CHART

 

HCL Technologies Limited (HCLTECH)

Likely target: Rs 900 and Rs 880

Downside potential: 3.33% - 5.48%

The counter has broken the 100-DMA after 11 months, as per the daily chart. If this breakdown is accompanied by strong volume, it may open the doors for the stock to dip to Rs 900 and then Rs 880 levels. Until the counter does not surpass the resistance of Rs 970 levels on good volume, which also is its 50-DMA, the downside bias is expected to stay. Also, the Moving Average Convergence Divergence (MACD) has breached the zero line downward, this suggests the overall trend will remain weak going ahead. CLICK HERE FOR THE CHART