Technical Check: After 20% fall, stock of this brokerage firm records a bullish reversal pattern on daily charts; Don't miss!
The brokerage firm witnessed a steep fall of 20 per cent from the recent top or 52-week high of Rs 895.60 recorded on 13 October 2021 on the BSE.
ICICI Securities Ltd rose 70 per cent so far in the year 2021 compared to 24 per cent upside seen in the Nifty50 in the same period.
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The brokerage firm witnessed a steep fall of 20 per cent from the recent top or 52-week high of Rs 895.60 recorded on 13 October 2021 on the BSE. The stock finally took support near Rs 701 recorded on 28 October, and it retested Rs 715 again on 30 November.
The recent price action suggests that 700 is acting as crucial support for the stock in the near term. Technically, price has formed a Bullish Engulfing candlestick pattern which is a sign of reversal.
A bullish Engulfing pattern is formed earlier this week when a small bearish candle is followed by a large bullish candle that completely overlaps or engulfs the body of the previous day’s candlestick.
If the momentum sustains the next possible target for ICICI Securities is placed at Rs 950 in the next 6-9 months that translates into an upside of over 23 per cent from Rs 770 recorded on 7 December, suggest experts.
ICICI Securities (ISEC) is engaged in the business of broking (institutional and retail), distribution of financial products, merchant banking and advisory services.
Its core customer segment can be broadly classified into 2 categories namely Gen Z/Millenials and the Ultra HNI/Mass Affluent. The value proposition for both these sets of customers differs significantly.
“Stock price in mid -October price had breakout above 800 but eventually retraced back into the consolidation range which is now almost five months. The lows within the range are higher than previous low indicated by rising support trend line (dotted line),” Ashish Chaturmohta, Director, Equity Research at Sanctum Wealth, said.
“Also, price has taken support at 89-day exponential moving average (green line). Price has formed bullish engulfing candlestick pattern (body bullish candle engulfs previous day's bearish candle) which is reversal pattern on the daily chart,” he said.
Chaturmohta further added that the stock can be bought at current levels and on dips to 770 with a stop loss of 735 for the target of 950 in the coming 6-9 months.
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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