ICICI Bank stock has cleared a 13-week, 22% deep Cup With Handle Base this week. Currently, the stock is trading around just 3% away from its ideal buy price of INR 628. The stock is offering investors an opportunity to get on board at the current price.
The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 8.42% away from the 10-week moving average.
In the last twelve months, ICICI Bank has rallied nearly 120.7% as compared to 68.4% for the Nifty500. It has a Relative Strength Rating of 63. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.
The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If ICICI Bank can maintain this outperformance, it could make sense as a CANSLIM trade.
ICICI Bank stock has strong institutional support. The Accumulation/Distribution Rating of 'A-' represents heavy institutional buying over the past 13 weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.
On the earnings front, ICICI Bank has an excellent EPS Rank of 82, which indicates consistency in earnings. The earnings and sales for the stock have grown by 53% and 11%, respectively over the past three years. Its 3-years earnings stability is 28, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 6% and 10%, respectively. The 5-years earnings stability is 44. The return on equity for the last reported year is 14%.
The stock belongs to the industry group of Banks-Money Center. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 115. The current price of ICICI Bank is -5% off from its 52-week high price and 127% above its 52-week low price.