ICICI Bank, M&M charts flag Death Cross; here's what happened in the past

ICICI Bank and M&M are seeing 'Death Cross' on daily chart for the 4th time in last 5 years; both stocks managed to negate the bearish implications in the last 3 instances, will history be repeated?

Even as the benchmark equity indices are on a comeback trail, 2 of the Nifty 50 stocks - ICICI Bank and Mahindra & Mahindra today have seen formation of 'Death Cross' pattern on the daily charts.  The term 'Death Cross' is used when the shorter-term moving average i.e. the 50-day DMA (Daily Moving Average) of a particular stock or index falls below the long-term 200-day DMA. Technically, the 'Death Cross' pattern has a bearish implication as the resistance levels tend to move lower.  However, 'Death Cross' pattern alone does not determine the outlook for the particular stock or index; hence we tend to see few false signals and trend reversals at times.  Interestingly, historic charts show that these 2 stocks - ICICI Bank and Mahindra & Mahindra (M&M) are seeing a 'Death Cross' formation for the fourth time in the last 5 years, and both the stocks had successfully managed to negate the bearish implications in the last 3 instances.  ICICI Bank saw 'Death Cross' on the daily scale in March 2023, which was negated by the formation of 'Golden Cross' - meaning the 50-DMA crossing back over the 200-DMA - in May 2023. Similarly, the stock overcame implications of 'Death Cross' in the period April 2022 to August 2022 and April 2020 till November 2020. The stock during this period had gained 11.4 per cent, 14.1 per cent and 44.9 per cent, respectively.  On similar lines, M&M stock last saw the 'Death Cross' pattern in April 2023, which was negated in June 2023. Prior to which, the pattern was observed between March 2022 to May 2022 and August 2021 till November 2021. The average gain during these 3 periods stood around 16 per cent for M&M.  However, the historical chart also shows formation of 'Death Cross' for M&M stock in November 2018; post which the stock cracked up to 67 per cent from levels of ₹ 708 then to a low of ₹ 234. The stock eventually quoted around ₹ 568 when the 'Golden Cross' pattern emerged in July 2020.    That apart, in very recent times, the NSE Nifty 50 index saw 'Death Cross' formation on January 17, 2025 when the index quoted around 23,200 levels; post which thus far the index declined up to 5.3 per cent to a low of 21,965 on March 04, 2025. At present, the Nifty has recouped most of its losses and today hovered above the 23,000-mark after more than a month.  Given this background of a likely bearish implication of the 'Death Cross' pattern, and the recent false signals; here are the key levels to track on ICICI Bank and M&M stocks.  ICICI Bank  Current Price: ₹ 1,315  Upside Potential: 16%  Downside Risk: 10.7%  Support: ₹ 1,300; ₹ 1,280; ₹ 1,267  Resistance: ₹ 1,342; ₹ 1,405; ₹ 1,478  ICICI Bank had recently given a breakout on the daily scale; the stock is expected to trade on an upbeat note as long as it sustains above ₹ 1,300-mark. On the upside, the stock may test resistance around ₹ 1,342 and ₹ 1,405. The yearly Fibonacci charts indicate a likely upside target of ₹ 1,525 for the stock, with interim resistance likely at ₹ 1,478.  On the downside, the key support for ICICI Bank stands at ₹ 1,280 and ₹ 1,267 levels; break and sustained trade below the same can negate the present positive bias at the counter. As such, the stock may re-visit the recent lows near ₹ 1,175 levels. CLICK HERE FOR THE CHART    Mahindra & Mahindra (M&M)  Current Price: ₹ 2,828  Upside Potential: 19.5%  Downside Risk: 29.3%  Support: ₹ 2,715; ₹ 2,570; ₹ 2,335; ₹ 2,150  Resistance: ₹ 2,875; ₹ 2,925  Technically, M&M is trading with a negative bias as the stock trades below its key moving averages on the daily scale. The near-term bias is likely to remain negative as long as the stock trades below ₹ 2,925 levels. There seems to be a massive congestion zone between ₹ 2,875 - ₹ 2,925 owing to convergence of multiple moving averages in this band. CLICK HERE FOR THE CHART  In case, the stock is able to conquer the resistance zone; it can then possibly extend the rally towards ₹ 3,380 - wherein the upside seems capped for now.  On the downside, the stock has near support at ₹ 2,715; below which the key support stands at ₹ 2,570. The long-term chart threatens a likely fall towards ₹ 2,000-mark with interim support likely at ₹ 2,335 and ₹ 2,150 levels.