ICICI Bank Under Fire: Why the Banking Giant Suddenly Slipped — Investors Caught Off Guard

ICICI Bank: Today was a mixed and slightly disappointing day for shares of ICICI Bank, a major player in the Indian banking sector. The widespread selling seen in the banking index on Dalal Street on the last trading day of the week directly impacted ICICI Bank.

By market close, the bank’s stock closed at ₹1,414.60 on the National Stock Exchange, a decline of approximately 1.08 percent from its previous close. Although the stock attempted some recovery during the intraday session, negative market sentiment and global cues limited any gains.

Private Banking Giant Under Pressure

When the market opened this morning, ICICI Bank shares opened at ₹1,425.30 and touched a high of ₹1,434.40 in the first hour of trading, raising investors’ hopes that the stock would set a new record today. But as the Nifty Bank decline deepened, selling pressure increased, and the stock slipped to a low of ₹1,410.70.

This decline, with a total volume of approximately 6.8 million shares, is primarily attributed to profit-booking at higher levels. With a massive market cap of ₹10.12 lakh crore, ICICI Bank remains the country’s third-most valuable company, and its fundamentals, such as a net interest margin of 4.5 percent, make it a strong long-term bet.

How will the market be on Monday

For the upcoming trading session, Monday, February 16, technical analysts believe that the stock is currently trading near a very important support zone. The ₹1,405 to ₹1,410 levels on the charts are acting as a very strong base, and as long as the stock remains above this level, there is no cause for panic. The ₹1,435 level will be the first stiff resistance for the stock on Monday.

If it manages to break through this barrier and hold above it, we could soon see it move towards new targets of ₹1,450 and then ₹1,470. However, if the market continues to remain under selling pressure on Monday and the stock slips below ₹1,405, the next significant decline could take it to ₹1,385.

Technically, nearly 97 percent of market experts have maintained their ‘BUY’ rating on this stock, and several leading brokerages have given long-term targets of up to ₹1,715. The stock’s RSI (Relative Strength Index) is currently in the balanced zone, meaning there has been neither excessive buying nor excessive selling, making it highly likely that buying will return from lower levels on Monday.

ICICI Bank investors could receive a significant gift.

Swing traders and short-term investors should closely monitor the trend in the first hour after market opening on Monday. If Bank Nifty stabilizes, they can consider creating new positions with a stop-loss of ₹1,410. For long-term investors, the current decline is merely a temporary fluke and should be viewed as a ‘buy on the dip’ opportunity, as the bank’s credit growth and asset quality consistently exceed the highest standards in Indian banking.

About the Author