Analyzing India

Interesting Price Pattern Develops on This General Insurance Stock

 | 

ICICI Lombard General Insurance Company Ltd -- ICICIGI.IN

The most recent price action in ICICIGI shows that it is likely to move past its multi-point resistance zone, existing between 1540-1560 levels. The stock has seen a broad range consolidation and the formation of higher bottoms after it took support on its 200-DMA, which stands at 1413.

The daily MACD is bullish and remains above its signal line. The RSI has marked a new 14-period high, which is bullish. RSI, however, is neutral and does not show any divergence against the price.

The stock has rolled inside the leading quadrant on the RRG when benchmarked against the broader NIFTY500 Index. It is likely to relatively outperform the broader markets. The RS line against the NIFTY500 Index is inching higher and has crossed above the 50-DMA. The OBV (On Balance Volume) has formed a new high, which acts as a confirmation on the volume front.

If the current technical structure resolves in the intended direction, the stock may test 1620 levels. This view will be negated if the price closes below 1520 levels.


Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia


Disclosure pursuant to Clause 19 of SEBI (Research Analysts) Regulations 2014: Analyst, Family Members, or his Associates holds no financial interest below 1% or higher than 1% and has not received any compensation from the Companies discussed.

The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions, and needs of specific recipients. This may not be taken in substitution for the exercise of independent judgment by any recipient.

The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates, or any other reason. Past performance is not

necessarily a guide to future performance. The usage of the Research Reports and other Services are governed as per the Terms of Service on https://equityresearch.asia/terms-of-use

The Research Analyst has not managed or co-managed the issues of any of the companies discussed and has not received any such remuneration from such activities from the companies discussed.

The Research Analyst has not received any remuneration from the Merchant Banking activities.

The Research Analyst has adopted an independent approach without any conflict from anyone. The Research Analyst has not received any compensation or other benefits from the companies mentioned in the report or third party in connection with the preparation of the research report.

Compensation of the Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

The Research Analyst is not engaged in a market-making activity for the companies mentioned in the report.

The Research Analyst submits that no material disciplinary action has been taken on him by any Regulatory Authority impacting Equity Research Analysis activities.

This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country, or other jurisdiction, where such distribution, publication, availability, or use would be contrary to law, regulation or which would subject the Research Analyst to any registration or licensing requirement within such jurisdiction.


Milan Vaishnav
About the author: , CMT, MSTA is a qualified Independent Technical Research Analyst at his Research Firm, Gemstone Equity Research & Advisory Services in Vadodara, India. As a Consulting Technical Research Analyst and with his experience in the Indian Capital Markets of over 15 years, he has been delivering premium India-focused Independent Technical Research to the Clients. He presently contributes on a daily basis to ET Markets and The Economic Times of India. He also authors one of the India's most accurate "Daily / Weekly Market Outlook" -- A Daily / Weekly Newsletter,  currently in its 15th year of publication. Milan's primary responsibilities include consulting in Portfolio/Funds Management and Advisory Services. His work also involves advising these Clients with dynamic Investment and Trading Strategies across multiple asset-classes while keeping their activities aligned with the given mandate. Learn More
Subscribe to Analyzing India to be notified whenever a new post is added to this blog!
comments powered by Disqus