Technically, the level at which ICICI Bank will become attractive: 1360-1370. The CMP is 1396.
1. Reason # 1: ICICI Bank broke out above 1270 with a Large Candle. Generally, when any stock does that - then the low of follow through candle becomes the base for the stock. In case of ICICI Bank, that level is 1360.
2. Reason # 2: ICICI Bank has broken out above 1270 and so it's a buy on pullback. For a trending stock, the most attractive pullback level is 50 dma, which as of today stands at 1372.
If I combine both reasons - Technically, one cannot rule out a strong support for ICICI Bank around 1360-1370.
If ICICI Bank cracks below 1360, then it's going to be trouble for Nifty. It will mean a deeper pullback for Nifty and ICICI Bank. Below 1360, the support for ICICI Bank comes at 1270. We will see what happens next week.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers