ICICI Bank Limited (IBN)

ICICI Bank stock forecast: buy or sell

ICICI Bank stock outlook

  • ICICI Bank closed today at $9.49 (-2.47%) prior to reporting earnings at
  • The price is currently under the lower Bollinger band, which is usually an indicator of a short-term rebound that you should not try to trade
  • The stock is configuring an uptrend pattern since last March, when it bottomed at $6.86. This uptrend marked a 38.34% gain
  • ICICI Bank Limited provides various banking products and financial services in India and internationally. It operates in Retail Banking, Wholesale Banking, Treasury, and Others Banking segments.
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Disclaimer:
The viewpoints given in this article are personal and not recommendations for you to buy or sell shares. The author of this report does not know the individual situations of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for general educational purposes only

ICICI Bank stock charts overview

Should I buy ICICI Bank stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is IBN stock a buy?

In the current situation of ICICI Bank there is not any eligible buy setup. This doesn't mean we expect a selloff for IBN in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell ICICI Bank stock?

"To sell or not to sell", if you are holding ICICI Bank shares?. Trading strategies give us the ability us to avoid impetuous decisions based on our emotions or the noise that surrounds the market. Our trading system selects very simple strategies to guide us on when is the best time to sell our shares. Be aware that these strategies are not intended for shorting IBN stock

A guiding principle is that you should not mantain an investment that results in greater losses than those expected by the time of purchase. The moment to sell your stock always has to be determined by the stop-loss (automatic or manual)

Is it time to sell ICICI Bank stock?

In the current situation of ICICI Bank there is not any eligible sell setup, so ICICI Bank stock holders with operations in green can keep their positions

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Analysts' recommendations to buy or sell ICICI Bank stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the previous month we couldn't find any rating for ICICI Bank

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Technical analysis

Since last March, ICICI Bank has been drawing an uptrend that so far marked a gorgeous 38.34%. The price action shows higher peaks and higher lows, and along the way gave some buying opportunities for those who wanted to invest. Latest pullback was in late July, when price bounced at $9.20. Like in all uptrends, price needs to rest and now price is moving in a range between $11.28 and $9.20

SMAs overview

Moving averages are simple indicators for investors to gauge momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Market investors use support and resistance levels as a way to identify price points on a chart that may behave as obstacles, preventing the price of an asset to move up or down. Supports are levels where the price tends to find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue falling until approaching another support level. On the other side, resistance levels are where the price may find resistance as it rises. In the same manner, the price is more liable to "rebound" at this level, and if it finally breaks this level, it will rally easily until it hits the next resistance

The current resistances are:

  • R1: $9.51 (0.21% above)
  • R2: $9.72 (2.42% above)
  • R3: $9.78 (3.06% above)
  • The current support levels are:

  • S1: $9.43 (-0.63% below)
  • S2: $9.36 (-1.37% below)
  • S3: $9.35 (-1.48% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. Fundamentally, the Bollinger Bands are lines that fluctuate around a moving average and vary the distance from the bottom to the top depending on market volatility. They are usually plotted by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    When the price moves out of the band (above the upper line or below the lower line) it signals that the stock is currently maintaining a very strong momentum and therefore can correct the trend to the average. For this case, the price is beneath the upper band, meaning a possible near-term bounce off (at least) until it is back above the band

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that track price fluctuations to reveal when the price of a share or financial asset is overbought or oversold. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 on August 31 after just crossing to the overbough zone for 1 day (weak signal). The RSI value today was 36.06. ICICI Bank shares collapsed a 15.57% since RSI lost the overbought zone

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    Earnings and financials

    ICICI Bank Limited (IBN) posted Q2 earnings of $0.13 per share, significantly surpassing the Market consensus estimate of $0.06 per share. This Q2 report represents an earnings surprise of 116.67%. Revenue resulted of $244.4 billion versus $1.7 billion forecasted by analysts.

    Same quarter one year ago, reported EPS was $0.11, so current EPS is an increase of 18.18%. Looking at revenue, figures exploded a 26.61% compared to $193.0B same quarter 12 months ago.

    ICICI Bank releases earnings report. Earnings reporting day has a more than usual risk for investors as the data disclosed can gap up or down the price with very low liquidity and not honouring your buy or stop-loss orders. It's always good to review company's website to confirm time and details on the earnings call and the earnings report.

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