362.25 +3.84 (+1.06%) Buy

Want to invest in ICICIBANK? Consider as it performed better than the broader market

13 min read

ICICI BANK LTD. performed better than the broader market today. It returned +1.06% to close at 362.25. It's recent 5 day performance has been +1.86%, +0.67%, -0.11%, +2.09% and -1.02%.

[Themes containing ICICIBANK]

ICICIBANK showed a strong up trend over the last 3 months. During this period ICICIBANK returned +12.87% and saw a maximum drawdown of -7.35%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ICICIBANK till volatility reduces and a clear trend emerges.


ICICIBANK has been outperforming the NIFTY-50 index in recent time. Over the last 2 years and 12 months, ICICIBANK outperformed the NIFTY-50 index on 46% days. Which indicates that on days ICICIBANK outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months ICICIBANK delivered losses on 52% days. However, it still managed to end this period in a profit. It's best return during this period (of +10.69%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -3.28%) was on Wednesday, 3 Oct, 2018. There was initially a bullish trend during this period which started on 6 Nov, 2018 and went on till 9 Nov, 2018. The bullish trend returned +2.05% to investors. This was followed by a bearish trend that started on 16 Nov, 2018 and ended on 22 Nov, 2018. This bearish trend lost -4.94% of investor capital.

On monthly basis, ICICIBANK delivered profits in more months over the last year, than losses. ICICIBANK delivered profits in more months than NIFTY-50 index. ICICIBANK significantly outperformed NIFTY-50 index in Jan 2018, when it returned +14.1% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ICICIBANK had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered +15.1%. It is interesting to note that both ICICIBANK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Behind every stock is a company. Find out what It's doing.

ICICIBANK is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in ICICIBANK's volatility from 5 Oct, 2018 to 10 Dec, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that ICICIBANK has significant negative skewness in it's return distribution. This indicates that ICICIBANK is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in ICICIBANK derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.

NIFTY-50 index has more chance of extreme outcomes than ICICIBANK. Therefore, NIFTY-50 must receive a lower allocation than ICICIBANK in your portfolio. NIFTY-50 index usually has shorter drawdown period than ICICIBANK.

On a general note (since you are interested in ICICIBANK), BAJFINANCE is a large cap that deserves to be closely tracked for investment opportunities.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter