ICICIGITechnical Analysis Breakdown:
1. Rounded Bottom + Multi-stage Base Formation
The stock has carved out a long rounded bottom, forming three notable cup-like bases over the past year.
Each time the price pulled back, it found support near key demand zones (highlighted in blue), forming higher lows — a sign of accumulation.
The current price action shows a smooth rounding structure that suggests growing buyer interest and waning seller pressure.
2. Supply Zone Test in Progress
Price is now approaching a strong supply zone (~₹2,030–2,050), where it has previously faced rejection multiple times.
The presence of long wicks in this zone in the past signals institutional selling pressure.
Watch for a decisive breakout with strong volume to confirm that supply has been absorbed.
3. Relative Strength Turning Up
The RS line vs Nifty has moved into positive territory after several months of underperformance.
This shift is crucial — especially if confirmed on the weekly chart — it implies sector rotation or renewed leadership from ICICIGI.
4. Moving Averages in Bullish Alignment
The stock is now trading above all key moving averages (20, 50, 100, 200 EMA), all of which are curling upwards.
This signals a strong trend resumption, especially as the 200 EMA acts as long-term support.
The breakout above the 200 EMA (around ₹1,940) was a major structural shift.
5. Volume and VCP Context
Recent price action shows tighter price ranges with reduced volatility near resistance, a characteristic of Volatility Contraction Pattern (VCP).
Volume has remained subdued but consistently stable, which is constructive as long as it expands on breakout attempts.
Interpretation & Trade Strategy
✅ Bullish Scenario:
A strong breakout above ₹2,050 with above-average volume can lead to a fresh rally, possibly retesting the previous all-time high zone (₹2,250+).
Follow-up candle should ideally close strong with range expansion.
⚠️ Risk Management:
Any rejection around ₹2,030–2,050 accompanied by high volume selling could lead to another correction within the base.
Traders should be cautious of false breakouts and manage entries based on volume confirmation or wait for a pullback entry near ₹1,970–1,990 if risk/reward improves.
📝 Conclusion
ICICIGI is showing classic signs of long-term accumulation, emerging strength, and trend reversal.
With the supply zone being tested now, the stock is at a critical inflection point. If buyers can overcome this hurdle with conviction, ICICIGI may rejoin the list of strong performers in the insurance space.
📌 Watch for:
Volume confirmation on breakout
Retest and hold of the ₹2,000–2,020 zone
RS staying above zero
