ICICI Bank Ltd. (IBN)
Update (11/12/07)

I'm updating our earlier short play on IBN, which got away from us after the March lows.  We think it isn't likely to do so this time around.

We've revised the Intermediate term count, which works out well with regard to internal Fibonacci relationships, and strengthens the case for a top in its bull run.  Already the stock has broken through some key support levels, with the next key at 56.  A more conservative entry might await a break through this, although if you don't mind some risk, 60 is resistance, and a stop can be placed above this.  If a break of 56 is successful, lower support kicks in at 52 and 50.  The ideal multi-week target would be the previous Wave 4 low at 36.

Updating the option play, the March 2008 $55 Put (symbol IBNOK) is currently selling for $5.90.  Delta is on the low side at 0.35, but volatility is high, and the price rose over 25% in today's trading.

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