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We recommend a sell in Axis Bank at current market price. From the weekly chart of Axis Bank we note that it had been on a long-term uptrend from its August 2007 low of Rs 534 till its lifetime-high of Rs 1,291 touched in mid-January. However, since then, the stock has reversed direction and has been on a short-term downtrend. This reversal has been supported by a prolonged bearish divergence in the weekly momentum indicator. Besides, the weekly moving-average convergence divergence lines, which are currently in the overbought levels, also point at short-term bearishness. The stock is currently hovering around its support level of Rs 1,000. The immediate resistance is at Rs 1,125 and the next resistance is at Rs 1,265. We believe that the upside is limited in this stock. Considering the bearish divergence in the weekly momentum indicator, we expect the stock to penetrate the immediate support and decline further to the subsequent support level of Rs 850 in the short-term. The Short-term investors can book profit at current levels or sell the stock with a stop-loss at Rs 1,100 level.

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