Technical Analysis

ICICI Bank (₹327): Buy

Yoganand D | Updated on October 22, 2018 Published on October 22, 2018

Investors with a short-term perceptive can buy the stock of ICICI Bank at current levels. The stock gained 3.8 per cent accompanied by above average volume on Monday, breaching thekey resistance level of ₹320.

Since taking support from the significant medium-term baseat ₹260 in early July, the stock has been trending up. After a corrective decline, the stock found support at ₹300 in mid-September and resumed its up move. Thereafter, the stock breached its 200-day moving average and hovers well above it.

There has been an increase in daily volume over the past two weeks. The daily as well as weekly relative strength indices are charting upwards in line with the stock price. Moreover, both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest.

Overall, the short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹340 and ₹347 in the short term. Traders can buy the stock with a stop-loss at ₹320.

 

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