Technical Call: ICICI Lombard General Insurance Company- BUY

Long-term outlook is bullish for ICICI Lombard General Insurance Company (₹2,007). The stock is getting strong support from its 100-Week Moving Average (WMA), currently at ₹1,835. A long-term trend line support is also poised around this level. So, that makes ₹1,835 a very strong support. A short-term resistance is at ₹2,150. A strong break above it will indicate a bullish inverted head and shoulder pattern on the chart. That will strengthen the bullish momentum and trigger a fresh rally. The region between ₹2,150 and ₹2,070 will then become a good support zone. That in turn can take the share price up to ₹2,600 over the next one year. Long-term investors can buy ICICI Lombard General Insurance Company shares now at ₹2,007. Accumulate on dips at ₹1,885. Keep the stop-loss at ₹1,660 initially. Trail the stop-loss up to ₹2,130 as soon as the stock goes up to ₹2,210. Revise the stop-loss higher to ₹2,280 and ₹2,440 when the share price touches ₹2,360 and ₹2,510 respectively. Exit the stock at ₹2,580. This bullish view will go wrong only if the share price declines below ₹1,835. In that case, the stock can fall to ₹1,600-₹1,550. However, such a fall looks unlikely.