Bearish Indicators Pressure ICICI Bank: SEBI Analyst Sees Buy-On-Dips Potential

Shares of ICICI Bank slid on Wednesday as expiry-related selling pressure, weak volumes, and an analyst downgrade weighed on sentiment. Over the past one week, they have slid 5%. 

Recent Developments

SEBI-registered analyst Deepak Pal noted that the bank held its 31st Annual General Meeting on August 30, where MD and CEO Sandeep Bakhshi reaffirmed the focus on transparency and growth. 

On Sept. 2, the lender also allotted 432,253 equity shares under its employee stock option scheme. However, Pal said the stock slipped 1.15% that day, with intraday losses of 1.37%, largely due to expiry-linked volatility and broader market weakness. 

He added that volumes were sharply lower at 97,700 shares compared to a 50-day average of 478,000, reflecting fading investor participation.

Analyst View

Pal pointed to several reasons behind the recent weakness, including a downgrade by Wall Street Zen from 'Hold' to 'Sell,' profit booking around derivatives expiry, and subdued sentiment across banking stocks as benchmarks Sensex and Nifty also ended lower. 

He said liquidity concerns were evident in declining delivery ratios.

Outlook

Looking ahead, Pal said ICICI Bank will participate in the Goldman Sachs Asia Leaders Conference and the Kotak BFSI Tour on Sept. 3, which may help reset sentiment if management commentary is strong. 

He added that the bank's second-quarter results due on Oct. 19 will be another key event, with robust earnings potentially reversing the downtrend, while weak provisions could deepen the selling pressure.

Technical View

On the technical front, Pal noted that the stock has been under pressure for the past three weeks, with the Relative Strength Index (RSI) hovering around 35, signaling a level that signals oversold territory. 

At the same time, Pal said both the Moving Average Convergence Divergence (MACD) and the Parabolic Stop and Reverse (SAR) indicators remain in bearish mode. 

In the near term, Pal pegged support at ₹1,375, with resistance at ₹1,450–1,455. He added that, given ICICI Bank's strong fundamentals, a buy-on-dips approach may be suitable, as any positive trigger could spark a rebound.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'neutral' amid 'normal' message volume.

ICICI Bank's stock has risen 8.6% so far in 2025.

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