ICICI Bank stock at crossroads, may test multi-year supports: Tech charts

ICICI Bank is seen trading close to its weekly trend line support, and the 50-MMA; key technical indicators the stock has not violated since May 2023 and November 2020, respectively; show charts.

ICICI Bank stock is seen trapped in a narrow trading range, between its 50-Day Moving Average (50-DMA) and the 20-DMA for the last 9 trading sessions, shows the technical chart. That apart, the stock is seen fluctuating above and below the 200-DMA.  The daily chart shows that the 50-DMA at ₹1,377 is seen acting as a near-term hurdle, while the 20-DMA at ₹1,362 has been providing support. Meanwhile, the 200-DMA stands in between at ₹1,373.  The daily chart further shows that the 50-DMA is seen converging towards the 200-DMA. As and when the 50-DMA slips below the 200-DMA, it shall signal the formation of a 'Death Cross' - which in general has bearish implications.  On Tuesday in intra-day trade, ICICI Bank was seen trading on a flat note at ₹1,366, after having tested both the - 50-DMA and the 20-DMA in intra-day trades.  Given this background, here's a detailed technical analysis on the ICICI Bank stock. 

ICICI Bank: Technical outlook

ICICI Bank

Current Price: ₹1,366  Downside Risk: 12.1%  Support: ₹1,340; ₹1,332; ₹1,295  Resistance: ₹1,377; ₹1,402  Apart from the above mentioned key moving averages, ICICI Bank stock is also seen trading below the 100-DMA for the last three months on a consistent basis. This coupled with the possibility of 'Death Cross' formation on the daily chart, signals a likely cautious outlook for ICICI Bank in the near-term. 

 

 

    Further, the daily chart shows presence of near-support for the stock at ₹1,332 in the form of the super trend line. Similarly, the weekly super trend line indicates support at ₹1,340, and this particular technical indicator has not been violated on a weekly closing basis since May 19, 2023. Thus, suggesting a likelihood of strong support for ICICI Bank stock around ₹1,332 - ₹1,340 zone.  The long-term chart shows presence of another key support in the form of 20-Month Moving Average at ₹1,295. ICICI Bank stock has been holding above the 20-MMA since the rebound in November 2020.  Charts flag that in case the above mentioned support levels are violated, ICICI Bank stock can potentially crack towards ₹1,200 levels on the downside, with interim support likely around ₹1,260.  Meanwhile, for the overall trend to turn favourable the stock will need to conquer and trade consistently above the 100-DMA hurdle, which stands at ₹1,402.