ICICI Bank, Zee in focus amid allegations on Sebi chief Buch; outlook here

ICICI Bank stock has gained 31% in the last 9 months, while Zee has crashed 50% thus far in 2024. Both stocks could see a role reversal going ahead provided these levels are taken out, suggest charts.

Shares of ICICI Bank and Zee Entertainment are likely to be on investors’ radar in the coming trading sessions, as the names of these companies have been embroiled in the controversy-cum-allegations against the Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch.

 

On Monday, Sebi chief Madhabi Puri Buch came under attack from opposition leaders - Congress post reports of conflict of interests. Congress alleged that the Sebi chairperson was drawing a salary from Sebi and also holding an office of profit at the ICICI Bank, continuing to receive income from them.

 

A claim denied by ICICI Bank later in the day, the private lender stated that it has not paid any salary or granted ESOPs to Sebi chairperson Madhabi Puri Buch after her retirement on October 31, 2013, as alleged by the Congress.

 

 

That apart, media baron, Subhash Chandra, chairman emeritus of Zee Entertainment Enterprises has also alleged corruption at Sebi and called for further investigation and analysis. 

 

He alleged that one Manjit Singh, recommended to him by the secretary of a bank’s chairperson, approached him in February to resolve all pending issues at Sebi for a “price.” 

 

Subhash Chandra is currently being probed by the market regulator for alleged fund diversion of over Rs 2,000 crore from the media behemoth. 

 

Meanwhile on the bourses on Tuesday, ICICI Bank stock slipped 0.7 per cent, while Zee Entertainment dropped 3 per cent in intra-day deals thus far. In comparion, the BSE Sensex was down 100 points at 82,450 levels and the NSE Nifty 50 index quoted around 25,250 levels.

 

Going ahead these are the key levels that could help determine the trend for these two stocks in focus:

 

ICICI Bank

Current Price: Rs 1,226

Downside Risk: 12.4%

Support: Rs 1,195; Rs 1,174

Resistance: Rs 1,268

 

ICICI Bank has been making higher-highs and higher-lows on the weekly scale for the last nine months; and the stock has gained 31 per cent during this period. However, off late key momentum oscillators on the weekly and monthly charts have shown signs of tiredness and some negative divergence. As such, the stock may witness a tepid trend in the near-term.

 

On the upside, the Rs 1,268 level is likely to act as a stiff resistance for the stock. On the downside, ICICI Bank stock has near support at Rs 1,195; below which the key support stands at Rs 1,174 - its 20-WMA (Weekly Moving Average) a level the stock has not violated since December 2023.

 

Break and sustained trade below these key levels, can trigger a price correction in ICICI Bank towards Rs 1,074 levels; with interim support expected around Rs 1,143 and Rs 1,105 levels. CLICK HERE FOR THE CHART

 

Zee Entertainment

Current Price: Rs 139

Upside Potential: 24.5%

Support: Rs 132; Rs 130

Resistance: Rs 145; Rs 161 

 

In contrast to ICICI Bank, Zee Entertainment has been a laggard and declined near about 50 per cent so far in the calendar year 2024. Last week, the stock witnessed some buying activity after the company settled all its disputes with Sony with regards to merger termination fee claims.

 

However, despite that, Zee stock continues to remain tepid on the medium-term chart. As the stock did cross its 20-WMA in intra-week deals, but eventually closed below the same. The 20-WMA stands at Rs 145 and has been acting as a stiff resistance for the stock for the last two months.

 

At present, the stock is seen testing support at its 20-DMA (Daily Moving Average) at Rs 138. Below which, the stock can test support at Rs 132 and Rs 130 levels. Break and sustained trade below Rs 128 can trigger a fresh round of selling at the Zee counter; following which the stock can slide to Rs 115 - Rs 111 levels. CLICK HERE FOR THE CHART

 

On the positive front, the stock needs to conquer its 20-WMA; post which a rally to Rs 173 seems likely with interim resistance visible at Rs 161.