ICICI Bank Under Probe By US SEC Over Loan Related Accounting Practices

Market sentiment for shares of ICICI Bank is turning negative over loss in Q1 results and news of US SEC intensifying its probe over ICICI Bank’s accounting practices, especially those related to loans disbursed between 2010 and 2016, many of which turned bad later and were alleged to be the ones on which the bank delayed provisioning. The news hit market just before Q3 results which added greater impact over investor sentiment. However looking at price action from technical standpoint indicates positive price action in near future.  The scrip reached an intra-day high of 308.25 and is trading at 307.35 with 4.83% increase in value in NSE. RSI indicator which is used to measure the momentum of stock based on speed of change in stock price regardless of direction in which price moves is currently in range of 53 to 88 and the signal line continues to move in oversold region with a upward incline supportive of existing momentum for upward price growth in near future.

Parabolic SAR indicator and ADX crosses indicator which are used to identify good points of entry and exit have both formed bullish signals in intra day and weekly charts supportive of continued uptrend price growth in near future trading session. Similarly Zig Zag indicator which is used to predict reversal of trend in longer time frame without being influenced by any short term volatility has also formed uptrend indication supportive of continued bullish price movement. Expected support and resistance levels for the stock for the week are at 256.64/267.20 and 319.79/338.28 respectively.

Source : MCharts MT4 Platform

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