ICICI Lombard General Insurance Shares Shift to Bearish Momentum Amid Technical Downgrade

Technical Trend Shift and Price Movement

The stock closed at ₹1,903.30, down from the previous close of ₹1,952.55, marking a significant intraday drop. The day’s trading range was between ₹1,894.20 and ₹1,969.00, with the 52-week high at ₹2,074.85 and the low at ₹1,612.65. This recent price action aligns with a broader technical trend change from mildly bearish to outright bearish, signalling increased selling pressure.

Over the past week, ICICI Lombard’s stock has declined by 1.25%, slightly outperforming the Sensex’s 1.47% fall. However, the one-month return of 6.05% comfortably surpasses the Sensex’s 0.84%, indicating some resilience in the medium term. Year-to-date, the stock is down 2.99%, marginally better than the Sensex’s 3.51% decline. Over longer horizons, the stock has delivered an 11.1% return in one year and an impressive 74.69% over three years, outperforming the Sensex’s 38.28% over the same period. Despite this, the recent technical deterioration raises concerns about near-term momentum.

MACD and Momentum Indicators

The Moving Average Convergence Divergence (MACD) indicator remains bearish on the weekly chart and mildly bearish on the monthly chart. This suggests that the stock’s momentum is weakening, with the MACD line below the signal line on weekly timeframes, indicating potential further downside. The monthly mildly bearish reading implies that while the longer-term trend is not strongly negative, caution is warranted as momentum is not robust.

The Know Sure Thing (KST) indicator corroborates this view, showing bearish momentum on the weekly scale and mildly bearish on the monthly scale. This convergence of momentum indicators points to a sustained weakening in price strength.

Relative Strength Index and Bollinger Bands

The Relative Strength Index (RSI) currently shows no clear signal on both weekly and monthly charts, hovering in a neutral zone. This suggests that the stock is neither overbought nor oversold, leaving room for further directional movement based on other technical factors.

Bollinger Bands, however, indicate bearishness on the weekly chart and mild bearishness on the monthly chart. The stock price has been trading near the lower band on the weekly timeframe, signalling increased volatility and potential downward pressure. The monthly mild bearishness suggests that the price remains under pressure but has not yet reached extreme levels.

Moving Averages and Volume Analysis

Daily moving averages have turned bearish, with the stock trading below its key short-term and medium-term averages. This technical configuration often signals a continuation of downward momentum unless a strong reversal catalyst emerges. The bearish crossover of moving averages adds to the negative sentiment among traders.

On the volume front, the On-Balance Volume (OBV) indicator presents a mixed picture. Weekly OBV is mildly bullish, suggesting some accumulation by investors in the short term. However, the monthly OBV is mildly bearish, indicating that over a longer horizon, selling pressure may be outweighing buying interest. This divergence in volume trends adds complexity to the stock’s outlook.

Dow Theory and Broader Market Context

According to Dow Theory, the weekly trend remains mildly bullish, which contrasts with the bearish technical indicators. This suggests that while the stock’s price momentum is weakening, the broader market or sector sentiment may still be supportive. On the monthly scale, Dow Theory shows no clear trend, reflecting uncertainty in the longer-term directional bias.

Comparing ICICI Lombard’s performance with the Sensex reveals that despite recent weakness, the stock has outperformed the benchmark over one month, one year, and three years. However, the five-year return of 28.54% lags behind the Sensex’s 61.92%, indicating that the stock’s longer-term growth has been moderate relative to the broader market.

Mojo Score and Grade Downgrade

MarketsMOJO has downgraded ICICI Lombard’s Mojo Grade from Hold to Sell as of 24 Feb 2026, reflecting the deteriorating technical landscape. The current Mojo Score stands at 44.0, signalling weak momentum and caution for investors. The Market Cap Grade remains low at 2, consistent with the mid-cap status of the company and its relative valuation metrics.

This downgrade underscores the need for investors to reassess their positions, especially given the bearish signals from multiple technical indicators and the recent price decline.

Investor Takeaways and Outlook

ICICI Lombard’s recent technical deterioration suggests that investors should exercise caution in the near term. The bearish signals from MACD, moving averages, and Bollinger Bands indicate that the stock may face further downside pressure. The neutral RSI and mixed volume indicators imply that the stock is not yet oversold, leaving room for additional declines.

However, the company’s strong medium- and long-term returns relative to the Sensex highlight its underlying business strength and growth potential. Investors with a longer investment horizon may consider these fundamentals alongside technical signals.

Given the downgrade to a Sell rating by MarketsMOJO and the current technical landscape, short-term traders might look for confirmation of trend reversals before initiating new positions. Meanwhile, long-term investors should monitor key support levels near the 52-week low of ₹1,612.65 and watch for signs of technical recovery.

Overall, ICICI Lombard’s stock is navigating a challenging phase marked by weakening momentum and increased volatility. A cautious approach, combined with ongoing monitoring of technical and fundamental developments, is advisable.

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