ICICIGI - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.9

📊 Chart Patterns: ICICI Lombard General Insurance (ICICIGI) is trading slightly below its 50 DMA (1,968 ₹) but above its 200 DMA (1,920 ₹), showing short-term weakness within a medium-term uptrend. Current price (1,954 ₹) is near support at 1,940–1,950 ₹, with resistance around 1,970–2,000 ₹. Broader range remains 1,940–2,000 ₹.

📉 Moving Averages: Price below 50 DMA indicates short-term bearishness, but above 200 DMA confirms medium-term strength.

📉 RSI: At 43.5, RSI is neutral to weak, suggesting limited momentum and potential consolidation.

📉 MACD: Negative at -12.9, confirming bearish momentum and signaling caution for traders.

📊 Bollinger Bands: Price is near the mid-band, suggesting sideways consolidation within the current range.

📉 Volume Trends: Current volume (3,39,078) is below average weekly volume (4,21,219), showing reduced participation and lack of strong buying conviction.

📌 Short-term Momentum Signals: Weak momentum with neutral RSI and negative MACD. A bounce is possible if price holds above 1,940 ₹. Breakout above 1,970–2,000 ₹ could trigger recovery toward 2,050 ₹.

🎯 Optimal Entry Zone: 1,940–1,955 ₹ (near support).

🎯 Optimal Exit Zone: 1,970–2,050 ₹ (near resistance).

📉 Trend Status: The stock is consolidating with a bearish bias, awaiting breakout confirmation.

Positive

• Strong ROCE (24.9%) and ROE (18.8%) reflect efficient capital utilization.
• EPS of 56.4 ₹ supports valuation strength.
• Quarterly PAT growth (820 Cr. vs 747 Cr.), up 18.1%, highlights earnings resilience.
• Debt-free balance sheet (0.00 debt-to-equity) ensures financial stability.

Limitation

• Stock trading below 50 DMA shows weak short-term technical strength.
• RSI and MACD indicate bearish momentum.
• Dividend yield of 0.64% is modest compared to peers.
• P/E (34.7) is lower than industry PE (42.8) but still relatively high.

Company Negative News

• DII holding decreased slightly (-0.11%), showing reduced domestic institutional support.

Company Positive News

• FII holding increased by 0.10%, reflecting foreign investor confidence.
• Quarterly PAT growth highlights operational resilience.

Industry

• Industry PE at 42.8 is higher than ICICIGI’s PE (34.7), suggesting relative undervaluation.
• Insurance sector outlook remains strong with rising demand for health and general insurance products.

Conclusion

⚖️ ICICIGI is fundamentally strong with solid ROCE/ROE, debt-free status, and consistent profit growth. However, technically the stock is consolidating below its 50 DMA with bearish signals from RSI and MACD. Entry is favorable near 1,940–1,955 ₹ with cautious exit around 1,970–2,050 ₹. Long-term investors may hold for sector strength, while short-term traders should wait for confirmation above 1,970 ₹.