Axis Bank (₹493.1): Buy

Yoganand D BL Research Bureau | Updated on October 19, 2020 Published on October 20, 2020

Investors with a short-term perspective can buy the stock of Axis Bank at current levels. The stock gained 4.4 per cent with above average volume on Monday, exceeding a key medium-term resistance at ₹480. Since the stock took support at ₹285 in late March, it has been in an intermediate-term uptrend.

Following a corrective decline in early September, the stock found support at ₹400 in late September and continued to trend upwards. While trending up, the stock had breached the 21 and 50-day moving averages and trades well above them. The recent breakthrough of the key barrier at ₹480 has strengthened the uptrend and bullish momentum. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is charting higher in the neutral region. Besides, the daily as well as the weekly price rate of change indicators are hovering in the positive territory implying buying interest. The short-term outlook is bullish. The stock has the potential to trend upwards and reach the price targets of ₹513 and ₹523 in the coming trading sessions.

Traders can buy the stock with a stop-loss at ₹482. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on October 20, 2020
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