The outlook remains positive for the stock of ICICI Bank. The stock finds immediate support at ₹321 and the most crucial one at ₹290. If the current trend sustains, it could trend upwards and reach ₹410. The prospect of ICICI Bank hitting ₹410 appears bright.
F&O pointers: ICICI Bank February futures added a healthy open interest positions on Friday. Besides, rollover to February series from January remains modest at 13 per cent. Option trading indicates that the stock could face a hurdle at ₹370.
That means, one has to fork out ₹27362.50, (as market lot is 2,750 units/contract), which could be the maximum loss one can suffer. For that to happen, ICICI Bank has to close below ₹350 at the time of expiry.
On the other hand, the strategy has humongous profit potential, if ICICI Bank falls or remains flat at around ₹350 in the current month and rises sharply during the February series.
We advice traders to exit the position if the loss mounts to ₹10,000. Hold the position till the first week of February.