Icici bank share price forecast 28th Jan 2016
Icici Bank Minor Trend is down / bearish. Icici Major Trend is sideways now. As per analysis of Icici Bank Share Price / Icici bank share price forecast we do not see any significant out performance from the share price going forward. From a immediate trading stand point it must be understood that Icici Bak Share Price has time cycle resistance from today 27th Jan 2016-3rd Feb 2016 and in terms of price we see immediate resistance around 240-245 Nse spot levels mentioned. So for those traders / investors who are thinking worst is over for Icici Bank we do not feel so and as per our forecast we see the share price heading towards 220-200 in the near term. Even after the share price makes a short term bottom around 200-220 we do not recommend to buy and hold this stock as there are way too many problems in the Bank that still need to come out in the open. Problems like retail fee income coming down problems like asset quality which will have to be disclosed by March 2017 as per Reserve Bank of India guidelines. So we can expect Icici Bank to take a one time hit on account of this restructuring which has been forced by the RBI.
While on the subject of Icici Bank I must tell you that yesterday some good fund manager with excellent track record was discussing what we see for Indian Stock Markets and particularly banking stocks. While discussing Baking sector he said that “Valuations have become reasonable to start buying banks” and our reply to that was “Valuations look reasonable today because one time hit and other asset quality problems are not in the open today, the day they are adjusted in the Balance sheets we will see the stock price another 20-30 percent lower from here and at that juncture we will consider what to do with the Banking sector”
Bottom line is that such massive damage on the price charts and such weakness in Icici Bak Share price (where the pullbacks do not last over 3-5 trading days) when charts are telling us that there is a problem do not argue with the chart. We must just accept it and move on. I am saying this because I do not like or dislike any financial instrument but if we see weakness then we must communicate what we see and not what our clients want to hear. So once again we are recommending to stay away from Banking stocks and Baking sector and especially Axis Bank and Icici Bank.
Good Trading To You!