Double bottom-like pattern breakout: ICICI Bank

The company is fundamentally very strong and reported increasing profits and net income margins every year.

On the technical chart, the stock of ICICI Bank has given a breakout from its double bottom-like pattern on the daily timeframe. The stock took support at around 700-710 level and has bounced back from there. It had decisively closed above the neckline of the pattern yesterday and currently trades above it. According to the pattern, the stock has an upside of about 10% in short term. To support the bullish claim, the RSI has entered the bullish territory and the MACD Histogram suggests strong potential for an uptrend. The Elder Impulse System indicates extreme bullishness of the stock since the past three days while Mansfield Relative Strength indicators indicate outperformance of the stock against the broader market in the near term. The past three days have met with rising volume which supports the bullish nature of the stock. The stock is quite attractive for the short as well as for the medium term.

The stock has performed well last year as it delivered nearly 50% returns to its investors. In the short period of 3 months, the stock outperformed most of its peers and sector, as it delivered about 12% returns during this period.

The company is fundamentally very strong and reported increasing profits and net income margins every year. It is evident from the fact that foreign institutional investors hold almost half of the company’s stake while the mutual fund houses hold more than 35% of the stake of the company. With such strong backing by the institutions, the company is very lucrative for investing as well.

ICICI Bank Ltd is India`s second-largest private sector bank. It has a strong presence in retail as well as corporate banking services. The company offers services regarding Deposits, Loans, Cards, Investments and Insurance and Demat. The company has a market capitalization of Rs 5,45,305 crore and is one of the leading companies in the banking industry of India.