ICICI BANK : Short To Mid Term View

Indian markets have entered in a definite correction phase, anyways it was not showing steam as much as it should on the back of strong show that global markets were showing.

Banking sector was anyways the prime target for bears due to consequent bas quarterly results postings as well as the ongoing NPA mess. The sector remained in limelight and bulls made some short term fast money due to certain governmental intervention news which were expected not to sustain the movementom. 

In last week we saw biggest PSU bank scam or fraud uncover comprising the 2nd largest lender and involving with it almost more than 10 other banks including couple of private sector ones.

This is called bad becoming worst.

ICICI bank has had good run which we assume was purely based on the liquidity rush and many believing that this and AXIS bank were undervalued but this is belief was also badly hurt when it posted decline in profits and rise in provisions and NPA.

Looking at the technical picture (Chart for spot prices), we can see that it looks like it is going to test the 200 DMA of around 300 and below it probably go down around 270 to fill its gap up of late October 2017.
We can see how banks like AXIS is also falling to its original range levels of about 500 after going above 575/600 levels before few days after almost more than one year. 

On monthly chart also it is backing aways from a possible lethal double top pattern and a possible monthly bearish piercing or dark cloud cover candle stick pattern can also be formed due to sell off in coming days of the month.

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