"Traders can accumulate the stock in the range of Rs 282-285 for the target of Rs 324 and a stop loss below Rs 269," says Achin Goel, Head of Wealth Management and Financial Planning at Bonanza Portfolio Ltd.
By Achin Goel
NSE's benchmark Nifty has remained in the green so far on the weekly chart. On the weekly chart, the index made a Twizer Bottoms around 10000 and moved up northwards.
Moreover, in its recent rally, Nifty has reclaimed its crucial 200-Days moving average (DMA). Also, the index has been sustaining higher after it broke out above the falling channel.
On the options front, increased interest in 10,200 Put suggests a positive shift in the Nifty range. However, a proximity to resistance levels may induce some small correction which we think would provide a buying opportunity in the near term.
On the higher end Nifty may extend its gain towards 10,650/10,850.
ICICI Bank Ltd: BUY | Target: Rs 324 | Stop loss: Rs 269 | Return: 14%
On the weekly chart, a Hammer is visible; which is a bullish reversal candlestick pattern. The decent volume at the reversal candle also confirms the possibility of the upwards trend in the days to come.
In addition, on the daily chart, the price has given falling trend line breakout. Moreover, an ugly double bottom formation is visible on the daily chart.
The momentum indicator, RSI (14) is in bullish crossover and rising on the daily chart. Traders can accumulate the stock in the range of Rs 282-285 for the target of Rs 324 and a stop loss below Rs 269.
Disclaimer: The author is Head of Wealth Management and Financial Planning, Bonanza Portfolio Ltd. The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.