ICICIBANK - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.6

📉 ICICI Bank is currently consolidating with bearish short-term momentum, though long-term fundamentals remain resilient.

📊 Technical Analysis

• Trend Status: Consolidating — price is below both 50-DMA and 200-DMA, indicating short-term weakness.
• Moving Averages: Price ₹1,346 is below 50-DMA (₹1,392) and 200-DMA (₹1,369), suggesting bearish crossover risk.
• RSI (37.9): Near oversold zone, indicating weak momentum but potential for a technical bounce.
• MACD (-8.54): Bearish crossover, confirming downward pressure.
• Bollinger Bands: Price near lower band, suggesting support around ₹1,330–₹1,340.
• Volume: Current volume (1.63 Cr) is slightly below weekly average (1.75 Cr), indicating cautious participation.

🎯 Entry & Exit Zones

• Support Levels: ₹1,330, ₹1,300, ₹1,270
• Resistance Levels: ₹1,392 (50-DMA), ₹1,425, ₹1,475
• Optimal Entry: ₹1,320–₹1,340 (on pullback near support)
• Exit Target: ₹1,425–₹1,475 (resistance zone)

✅ Positive

• Strong ROE (17.8%) and EPS of ₹69.6 reflect solid profitability.
• PEG ratio of 0.74 indicates undervaluation relative to growth.
• DII holdings increased by 1.15%, showing domestic institutional confidence.
• Quarterly PAT remains robust at ₹12,359 Cr despite slight decline.

⚠️ Limitation

• MACD and RSI indicate bearish momentum, limiting short-term upside.
• Price trading below key moving averages, signaling technical weakness.
• Debt-to-equity ratio of 5.58 is high, typical for banks but worth monitoring.

📉 Company Negative News

• Quarterly PAT declined from ₹12,768 Cr to ₹12,359 Cr, indicating margin compression.
• FII holdings dropped by 1.21%, reflecting reduced foreign investor sentiment.

📈 Company Positive News

• Consistent profitability and strong balance sheet fundamentals.
• Stock has rebounded 13.5% from its 52-week low of ₹1,186.

🏭 Industry

• Banking sector remains stable with improving credit growth and digital adoption.
• Industry P/E (14.5) is lower than ICICI Bank’s (19.5), suggesting premium valuation.

🧾 Conclusion

• ICICI Bank is consolidating with bearish short-term signals but strong long-term fundamentals.
• Entry near ₹1,320–₹1,340 could offer value with targets around ₹1,425–₹1,475.
• Investors should watch for a reversal in MACD and RSI to confirm trend recovery.