ICICI Bank is one of the largest private banks in India. The lender offers a diversified portfolio of financial products and services to retail, small and medium enterprises and corporate customers.The bank heavily focuses on technology and has been at the forefront of leveraging technology and offering facilities through digital channels like Mobile and Internet Banking. The company continues to go digital as the mobile penetration grows in India.
The bank, through its subsidiaries, ICICI Lombard General Insurance, ICICI Prudential Life Insurance, ICICI Prudential Asset Management, ICICI Securities, ICICI Home Finance and ICICI Venture, also provides allied services.
The ICICI Bank share has been a favourite of analysts and investors recently. No wonder the stock has delivered superior returns. As of June 2022, the stock is up about 150% or 2.5 times in the last five years. Most analysts remain bullish on the bank. So, should you be part of its long-term growth journey or trade for a short while? This is possible only after understanding fundamental and technical factors affecting the share prices.
In its Strengths, Weaknesses, Opportunities, and Threats analysis, ICICIdirect notes at least 11 points that make it one of the most sought-after names in the market. In comparison, it sees just one weakness in the stock.Among key strengths are improving returns on equity and returns on assets for the last two years, growth in revenue, profits and margins in recent quarters, improving cash flow from the core business and rising book value.
One weakness that ICICIdirect cites is declining net cash flow. Opportunities, according to ICICIdirect, present themselves as a decline in provisions, high analyst ratings that see at least a 20% upside in ICICI Bank share price and a positive breakout past the first resistance level. The solitary threat is an increase in non-performing assets in recent results.
Technical indicators are mainly bearish on the stock. Out of sixteen moving averages, nine are flashing bearish signals while the rest are bullish. Most bullish are relatively shorter-term averages such as five-day and 10-day exponential moving averages and five-day, 10-day, 12-day, 20-day, and 26-day simple moving averages.
Most of the other indicators are also flashing negative signals. Rate of Change 125, ROC 21, Williams %R, Commodity Channel Index and Moving Average Convergence Divergence are in the bearish zone for ICICI Bank. Relative Strength Index, Money Flow Index, and Average Directional Index are in the neutral zone. The Average True Range is the only indicator flashing a bullish signal for the ICICI share price.
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