ICICI Bank Ltd. Technical Momentum Shifts to Bearish Amid Market Pressure

Technical Trend Overview and Price Movement

As of 2 February 2026, ICICI Bank’s stock price closed at ₹1,333.50, down 1.59% from the previous close of ₹1,355.05. The intraday range saw a high of ₹1,365.10 and a low of ₹1,328.20, reflecting increased volatility. The stock remains below its 52-week high of ₹1,494.10 but comfortably above the 52-week low of ₹1,200.20, indicating a broad trading range over the past year.

The technical trend has shifted from mildly bearish to outright bearish, with daily moving averages confirming this negative momentum. The stock’s moving averages on the daily chart are trending downwards, signalling that short-term selling pressure is intensifying. This is a critical development for traders who rely on moving averages as dynamic support and resistance levels.

MACD and RSI Signals: Divergent Indicators

The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. On the weekly timeframe, the MACD remains bearish, reinforcing the downward momentum. The monthly MACD is mildly bearish, suggesting that while the longer-term trend is still negative, it is less severe than the weekly outlook. This divergence between weekly and monthly MACD readings indicates that the stock may be in a transitional phase, with short-term pressures outweighing longer-term stability.

Relative Strength Index (RSI) readings on both weekly and monthly charts show no clear signal, hovering in neutral territory. The absence of an RSI signal suggests that the stock is neither overbought nor oversold, which could imply a potential consolidation phase before the next directional move. Investors should monitor RSI closely for any breakout above 70 or drop below 30, which would indicate overbought or oversold conditions respectively.

Bollinger Bands and KST: Mixed Momentum Signals

Bollinger Bands on the weekly chart are bearish, with the price trending near the lower band, indicating increased selling pressure and potential volatility. Conversely, the monthly Bollinger Bands are sideways, reflecting a lack of decisive trend over the longer term. This contrast suggests that while short-term momentum is negative, the stock may be stabilising on a monthly basis.

The Know Sure Thing (KST) indicator adds further nuance. Weekly KST is mildly bullish, hinting at some short-term positive momentum or a possible relief rally. However, the monthly KST remains mildly bearish, consistent with the broader negative outlook. This divergence between weekly and monthly KST readings reinforces the idea of a stock caught between short-term recovery attempts and longer-term caution.

Additional Technical Indicators: Dow Theory and OBV

Dow Theory assessments on both weekly and monthly charts are mildly bearish, reinforcing the prevailing negative sentiment. This suggests that the stock is likely to face resistance in breaking out to new highs in the near term. Meanwhile, On-Balance Volume (OBV) shows no clear trend on either weekly or monthly timeframes, indicating that volume flow is not strongly supporting either buying or selling pressure. This lack of volume confirmation often precedes a period of consolidation or sideways movement.

Comparative Performance Against Sensex

Despite recent technical setbacks, ICICI Bank has outperformed the broader Sensex index over multiple time horizons. Year-to-date, the stock has declined by 0.70%, a smaller fall compared to the Sensex’s 5.28% drop. Over the past year, ICICI Bank has delivered a 6.34% return, surpassing the Sensex’s 5.16%. Longer-term performance is even more impressive, with a three-year return of 61.99% versus Sensex’s 35.67%, a five-year return of 148.32% compared to 74.40%, and a remarkable ten-year return of 537.48% against the Sensex’s 224.57%.

These figures highlight the bank’s resilience and growth potential despite short-term technical challenges. Investors with a long-term horizon may find value in the stock’s historical outperformance, though caution is warranted given the current bearish technical signals.

Mojo Score and Rating Update

MarketsMOJO has recently downgraded ICICI Bank’s Mojo Grade from Hold to Sell as of 1 February 2026, reflecting the deteriorating technical outlook. The current Mojo Score stands at 48.0, signalling weak momentum and a cautious stance. The Market Cap Grade remains at 1, indicating a relatively lower market capitalisation ranking within its sector. This downgrade aligns with the technical indicators pointing to increased selling pressure and a bearish trend.

Investor Takeaway and Outlook

ICICI Bank’s recent technical deterioration suggests that investors should exercise caution in the near term. The bearish daily moving averages and weekly MACD indicate that downward momentum is gaining traction, while neutral RSI readings imply limited immediate reversal potential. The mixed signals from Bollinger Bands and KST highlight a market in flux, with short-term relief rallies possible but longer-term trends remaining subdued.

Given the stock’s strong historical performance relative to the Sensex, long-term investors may consider holding through volatility, but those with shorter investment horizons should monitor technical indicators closely for confirmation of trend direction. A break below the recent low of ₹1,328 could signal further downside, while a sustained move above daily moving averages and a bullish MACD crossover would be required to restore confidence.

Overall, the downgrade to a Sell rating by MarketsMOJO reflects the current technical challenges facing ICICI Bank. Investors should weigh these signals alongside fundamental factors and broader market conditions before making allocation decisions.

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