Buy IFCI at 26.65 for Target 28.65 with Stop Loss 25.00. That’s 2 points reward, 1.5 points risk. This trade may take 1-2 months. The uptrend from March has been broken but IFCI tends to bounce back from sharp corrections. Market conditions are favorable for financial stocks with reducing interest rates. Investor with 12-18 months timeframe should hold IFCI for target 40, which can give 50% return on current price.
Nifty is back in buying zone with high quality reversal of the nascent down trend that was getting set for last 5 trading days. 8600 is the key level, below which downside will restart. Nifty may gain 100-150 points more before stalling.
ICICI Bank stock remains in sell zone as of 05 Aug 2016. Buy zone will start above 250. The stock has a history of recovering sharply from oversold areas due to rapid short covering.
Posted in Banking
Tagged ICICI Bank