ICICI Bank tests a key barrier

A break above ₹365 will strengthen the uptrend and take the stock up to ₹400

Here are answers to readers’ queries on the performance of their stock holdings.

I brought ICICI Bank at ₹355 with a short-term view. Should I hold it or sell?

Shyam Somani

ICICI Bank (₹361): Following a strong fall in the first half of 2018, the stock of ICICI Bank found support at ₹260 in late July 2018. Taking support from the significant long-term support level of ₹260, the stock resumed its long-term uptrend that has been in place since the early 2016 low recorded at ₹164.

From July, the stock has been on a medium-term uptrend. Moreover, the short-term trend is also up for the stock. But it encountered a key resistance at around ₹365 in early November and continues to test this barrier with a positive bias. The stock trades well above its 21- and 50-day moving averages. The indicators in the daily chart show mixed signs, while the weekly indicators hover in the positive territory, backing the trend.

A conclusive break above the current resistance level of ₹365 will strengthen the uptrend and take the stock northwards to ₹380 and ₹400 in the medium term. On the other hand, a decisive fall below the key support at ₹335 will mar the short-term uptrend and drag the stock down to ₹320 and then to ₹305 in the medium term. A fall below the key support at ₹305 will alter the medium-term uptrend and pull the stock down to ₹280 and then to ₹260 levels.

I bought shares of Dilip Buildcon at ₹797. What are the long-term prospects?

UN Sathish Babu

Dilip Buildcon (₹420): The stock has been on an intermediate-term downtrend since the May high of ₹1,248. Within this downtrend, the stock has been range-bound between ₹380 and ₹500 since late October. A strong break above ₹500 can take the stock up to ₹600 and ₹650 in the medium term. But an emphatic break above ₹800 is needed to alter the downtrend and take it up to ₹900 and ₹1,000. A fall below the key base level of ₹400 can drag the stock down to ₹350 and ₹300. Consider averaging on a strong rally above ₹500 with a stop-loss at ₹400.

Send your queries to techtrail@thehindu.co.in

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