Technical Picks to Keep an Eye On: ICICI Lombard General Insurance and Indian Hotels

Technical analysis identifies ICICI Lombard General Insurance and Indian Hotels as upside potential stocks. Both stocks have displayed promising structures and technical setups, including price volume contraction, and the potential to bounce back and breakout. Currently trading at Rs 1,680.75 and Rs 573.35 respectively, their price aligns with positive signals from technical indicators like RSI and ADX, suggesting a likely breakout scenario.

ICICI Lombard General Insurance Co. Ltd.

The daily chart of ICICI Lombard General Insurance Co. Ltd.

On the daily chart, ICICI Lombard General Insurance is presently showing a promising picture; the stock price is bouncing from a 50-day EMA. The stock price may resume its strong momentum-up in the coming trading sessions if it crosses and closes above the 52-week high, with the support of decent volume compared to the current volume. Volumes are dry right now and likely to rise soon.

Those considering a possible trade in Lombard General Insurance might purchase the stock at the current price with a stop loss of Rs 1,610 on a closing basis and aim to capitalize above the 52-week high.

The stock price is currently trading above its 50-day EMA, suggesting it is likely about to turn short-term bullish once more after bouncing back. The stock appears quite neutral when one looks at the Relative Strength Index, which is now trading at 49.71. The ADX of 12 indicates the present state of price momentum, which is moving with low momentum.

In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 1,615. The minor upper resistance is 52-week high and if the stock closes above 52-week high consecutively, then it may consistently trade above current levels.

ICICI Lombard General Insurance Co. Ltd. engages in the provision of general insurance products and services.

Indian Hotels Co. Ltd

The daily chart of Indian Hotels Co. Ltd

Indian Hotels’ current performance is indicated by a favorable technical setup. The company’s shares are now trading at Rs 573.35 and may continue the uptrend from the current level. The stock price is currently trading slightly above the 50-day EMA.

Those interested in possible trade in Indian Hotels could purchase the stock at the present price, setting a stop loss below the 50-day EMA at Rs 550, and aim for a target price higher than the level of Rs 620 and 52-week high.

The stock is trading around its all-important moving averages, and it is expected to find support near Rs 570 and Rs 540. The Relative Strength Index is trading near neutral levels at 45.81. This implies there may be potential for an increase in stock price strength. The ADX, now around 22, shows normal momentum and directional strength.

The level of Rs 540 serves as a crucial indicator for corrective movement, and the overall market structure favors traders if the stock sustains the level of Rs 570 and trades above it.

Indian Hotels Co. Ltd. engages in the ownership, operation, and management of hotels, palaces, and resorts.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.