The broader markets closed the last session of the week on a negative note, with the benchmark index ending 0.59% lower at 19,428.3. As almost all of the sectors closed in the red zone, here are 2 counters that delivered a fresh breakdown on Friday.
ICICI Prudential Life Insurance Company Limited
ICICI Prudential Life Insurance Company Ltd (NS:) is a large-cap insurance firm with a market capitalization of INR 82,854 crore and trades at an expensive valuation, with a TTM P/E ratio of 95.99. The stock fell 2.72% to INR 560 today and broke its short-term rising trendline support on the daily chart.
Image Description: Daily chart of ICICI Prudential Life Insurance Company with volume bars at the bottom
Image Source: Investing.com
The stock has also come out of a brief consolidation phase, that’s been going on since the last week of July 2023. This breakdown is depicting an imbalance in the demand-supply equation with a tilt towards heavy supply. The nearest support level is around INR 545 which can be tested in the next week and if the stock slides below this, then we may see a very heavy decline in the coming days.
Shriram Finance Limited
Shriram Finance Ltd. (NS:) is a NBFC with a market capitalization of INR 69,421 crore and trades at a TTM P/E ratio of 10.91. The stock had been rising ever since it delivered a healthy breakout with a gap-up opening on 21 June 2023. The consistency of demand didn’t let the price slip meaningfully during this time.
Image Description: Daily chart of Shriram Finance with volume bars at the bottom
Image Source: Investing.com
The price action also led to the formation of a rising trend channel which is an uptrend pattern. Today, the stock slipped 2.31% to INR 1,807.95 and breached its lower trendline support with a closing. This is a bearish trend reversal signal and should alert long holders from here on. It might take some time, but the stock might soon show a level of 1,640 on the screen. As long as the recent swing high of INR 1,901 is not breached, the trend should be deemed to be negative.
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