The stock of ICICI Securities has been in a strong downtrend since October last year. Within this downtrend, it has been consolidating between ₹575 and ₹680 since March 2022. This consolidation has been in the form of a wedge. The sharp 5 per cent fall on Thursday indicates a breakout of this pattern. This implies that the overall downtrend has resumed, and more fall is on the cards.
Immediate resistance will be at ₹615 and then next higher one is at ₹640. The chances are high for the stock to remain below ₹615. A fresh fall to ₹500 can be seen in the next two-three weeks. A strong break below ₹575 can trigger this fall. Traders can go short at current levels. Add to the short positions on a rise at ₹610. Stop-loss can be kept at ₹645. Trail the stop-loss down to ₹585 as soon as the stock falls to ₹560. Move the stop-loss further down to ₹540 as soon as the stock touches ₹525 on the downside. Book profits at ₹510.
To negate the fall to ₹500 and turn the outlook positive, a strong rise past ₹640 and ₹670 is necessary.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)