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MTECHTIPS;-How to trade ICICI Bank ahead of its quarterly results
ICIC BANK is all set to announce its second quarter numbers on Friday and the stock price continues to consolidate around the Rs1075-1100 levels.The stock seems interestingly poised ahead of the results and in all probability is likely to break out on the upside given that most momentum indicators point to a strong next few sessions for the counter.The immediate resistance for ICICI Bank seems to be just shy of the Rs 1100 mark and breach of which should be seen as a strong and decisive 'buy' signal.One look at the stock's chart from a slightly long-term perspective indicates that ICICI Bank has started outperforming the broader markets after almost a year and seems to have put in place a firm bottom at Rs1000 levels.We recommend a 'buy' on the stock from both a short term and a medium-term perspective with target prices of Rs1160 and Rs1250, respectively.The entire private banking space seems to be leading the current charge and is likely to do well going forward as well.For a trader trying to make a quick buck on the result pop, we recommend a buy with a stop loss below Rs1060 and a target of Rs1145.Another way to play the results can be to buy ICICI Bank and sell an equivalent quantity of Bank Nifty futures, thereby limiting risk and betting on the stock to outperform.
ET NOW estimates:
ICICI Bank LtdBSE 0.58 % is slated to declare its quarterly results for the quarter ended September 30 on Friday. India's largest private sector bank is expected to report a 24.3 per cent YoY rise in its second quarter net profit to Rs 1869 crore from Rs 1503.20 crore reported in the year-ago period, according to ET NOW Poll. Net interest income or the difference between interest earned and interest paid is likely to rise by 29.4 per cent on year-on-year basis. Net interest income is expected to have grown to Rs 3242.40 crore, up 29.40 per cent, against Rs 2506.40 crore (y-o-y). However, net interest margins (NIMs) are likely to decline QOQ, while improve on YOY basis.Pre provision profit (PPP) or profits before deducting any provisions is likely to rise by 29 per cent on year-on-year basis. PPP is expected to have grown to Rs 3037.30 crore, up 29 per cent, against Rs 2353.80 crore (y-o-y).
ICIC BANK is all set to announce its second quarter numbers on Friday and the stock price continues to consolidate around the Rs1075-1100 levels.The stock seems interestingly poised ahead of the results and in all probability is likely to break out on the upside given that most momentum indicators point to a strong next few sessions for the counter.The immediate resistance for ICICI Bank seems to be just shy of the Rs 1100 mark and breach of which should be seen as a strong and decisive 'buy' signal.One look at the stock's chart from a slightly long-term perspective indicates that ICICI Bank has started outperforming the broader markets after almost a year and seems to have put in place a firm bottom at Rs1000 levels.We recommend a 'buy' on the stock from both a short term and a medium-term perspective with target prices of Rs1160 and Rs1250, respectively.The entire private banking space seems to be leading the current charge and is likely to do well going forward as well.For a trader trying to make a quick buck on the result pop, we recommend a buy with a stop loss below Rs1060 and a target of Rs1145.Another way to play the results can be to buy ICICI Bank and sell an equivalent quantity of Bank Nifty futures, thereby limiting risk and betting on the stock to outperform.
ET NOW estimates:
ICICI Bank LtdBSE 0.58 % is slated to declare its quarterly results for the quarter ended September 30 on Friday. India's largest private sector bank is expected to report a 24.3 per cent YoY rise in its second quarter net profit to Rs 1869 crore from Rs 1503.20 crore reported in the year-ago period, according to ET NOW Poll. Net interest income or the difference between interest earned and interest paid is likely to rise by 29.4 per cent on year-on-year basis. Net interest income is expected to have grown to Rs 3242.40 crore, up 29.40 per cent, against Rs 2506.40 crore (y-o-y). However, net interest margins (NIMs) are likely to decline QOQ, while improve on YOY basis.Pre provision profit (PPP) or profits before deducting any provisions is likely to rise by 29 per cent on year-on-year basis. PPP is expected to have grown to Rs 3037.30 crore, up 29 per cent, against Rs 2353.80 crore (y-o-y).
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