ICICI Bank technicals suggest further downside

Shares of ICICI Bank Ltd fall as much as 3.17 pct to 259.5 rupees, lowest since Oct 24, 2017. ICICI Bank has launched a second external probe to examine allegations of irregularities in 31 loan accounts raised by a third whistleblower complaint, The Economic Times reported citing sources

Bank has hired a law firm which will look into allegations that ICICI inflated profits by at least $1.3 bln over 8 years by delaying provisioning for 31 NPA accounts, the report added

Stock breaks below a support at 264.1 rupees, the 50 pct Fibonacci projection level of the correction from Jan. 29 high to April 2 low.

Capture

This suggests stock may fall up to the next support at 251.45 rupees, the 61.8 pct projection level

Stock’s wave pattern suggests it’s in wave C of a three-wave correction. If the current wave travels the same distance as the wave A, it may lead to a price fall up to 210.62 rupees

Trend Intensity (TI) indicator rises to 19, suggests the stock is in early stages of a downtrend; MACD is also negative and below its signal line

Stock down 14.73 pct this year as of Friday, compared with a gain of 4.64 pct in the broader NSE Index