ICICI BANK: Correction Ahead

Indicator Analysis:

Prices were trading in an uptrend making higher highs and higher lows posting a high of INR 936.65 on 15'Sep'22 and subsequently retreated back on the same day forming a Hammer Candlestick pattern. Post that prices witnessed a selling pressure and broken the rising trend line established from Jun'22 low of INR 699.95 and currently trading below its 13-Day and 40-Day exponential moving average. The momentum oscillator Stochastic (13,8,5) has given an negative crossover and turned bearish while RSI (14) hovering around its 40-region.

Based on these observations prices are likely to hold below 900 region and continue the correction towards INR 800 and INR 775 (where 200-Day exp-moving average is also placed) in the coming 2-3 weeks.

Elliott Wave Scenario: Prices have concluded a five wave impulsive structure at INR 936.65 from Jun'22 low of INR 699.95 and subsequently undergone into a corrective structure trading below Fibonacci 23.6% retracement level. As per the current structure prices are likely to fall in a three wave corrective structure towards INR 800/770 which is also a Fibonacci 61.8% retracement level of the prior rally.

Hence, any recovery from the current level is likely to hold below INR 900 and lead the prices for downside correction towards INR 800 and INR 775 in the coming 2 to 3 weeks.

Manish Bhardwaj (CMT L-1)
Analyst & Co-Founder





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