ICICI share price: more room to run after the 238% jump?
ICICI share price continued its bullish comeback after the company published strong financial results. The stock jumped to a high of ₹920, the highest point since December 29. It has jumped by more than 14% from the lowest point on January 30th. In all, the shares have jumped by over 238% from the lowest level during the pandemic and 225% in the past five years.
ICIC strong financial results
ICICI, one of the biggest Indian banks, has made headlines in the past few months. The most recent news was the company’s financial results. In a statement, the company’s net income jumped to ₹91.2 billion in the first quarter. This amount translated to $1.1 billion and was a bigger increase than the expected ₹90.4 billion.
Other numbers showed that the bank was doing well. Deposits jumped by 10.9% to ₹11.8 trillion from the previous ₹10.64 trillion. Loans portfolio jumped to 22.7% while the net interest income jumped by 40.25 to ₹176.7 billion. Operating income soared by 36% to ₹138.6 billion. These strong results mirrored those of HDFC, which published strong numbers last week.
Indian banks have been growing rapidly in the past few years, helped by the strong economic growth in the country. India has been the fastest-growing emerging market country in the past few years, helped by rising foreign direct investments.
Indian banks have also been immune from the challenges facing western companies like First Republic Bank, Signature Bank, and Silicon Valley Bank. This is mostly because these banks faces unique challenges. Credit Suisse had many scandals while SVB had a lot of long-dated bonds.
A big risk for ICICI share price is the rising competition for cheaper loans. This means that the bank could see a higher cost of funds in the next few quarters. The other risk is that of a potential economic slowdown.
ICICI share price technical analysis
ICICI chart by TradingView
ICICI stock price has been in a strong bullish trend recently. This rally saw the shares jump above the key resistance point at ₹878.15, the highest point on February 16. That price was the neckline of the double-bottom pattern. The shares have moved above the 25-day and 50-day moving averages.
Therefore, there is a likelihood that the stock will continue rising as buyers target the key resistance point at ₹957.95. This price is about 4.67% above the current level. A move above this price will see it jump above this level. A drop below the key support at ₹878 will invalidate the bullish view.
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