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Axis Bank (₹1,043.1)
Hovering around a support
Axis Bank’s share price has been appreciating since June 2022. Back then, it took support at ₹630 and established a rally. There have been intermittent price corrections but the uptrend continued to remain valid. Last week, Axis Bank’s share price saw a sharp drop and closed at ₹1,043.10. But further decline is less likely since there is a strong support at ₹1,030. Besides, the stock has a rising trendline support near current levels.
So, we expect a rebound in price from here. In the short-term, the scrip is likely to see its price rising to ₹1,150. Traders can buy Axis Bank now at ₹1,043. Accumulate if the price dips to ₹1,030. Place the stop-loss at ₹980 initially. Revise this up to ₹1,070 when the stock surpasses ₹1,100. Exit at ₹1,140.
HDFC Life Insurance Company (₹579.1)
Confirms double top
The stock of HDFC Life Insurance Company has been on a decline since mid-December 2023. It fell off the resistance at ₹700. Last week, it slipped below the support at ₹600, which happened to be the neckline of a double-top chart set-up. This chart pattern indicates a bearish trend reversal and hints at a fall in price to ₹500 in the near term.
But the stock could see a corrective rally from here, probably to ₹600, before the next downswing. Hence, we suggest initiating short on HDFC Life at the current level of ₹579. Add shorts if the price moves up to ₹600. Place initial stop-loss at ₹630. When the stock declines below ₹550, tighten the stop-loss to ₹575. Liquidate the shorts at ₹520.
Tech Mahindra (₹1,321.6)
Shows upside potential
Tech Mahindra’s share price has been moving up over the past few months. The upswing began at ₹1,000 in May last year. A fortnight ago, it broke out of the resistance band between ₹1,300 and ₹1,320. This has opened the door for a further rally. Although the price saw a decline in the past week, the stock remains above the support at ₹1,300. We anticipate a recovery from the current level, which could lift the stock price up to ₹1,500.
Buy Tech Mahindra’s stock now at around ₹1,321. Add more shares to the holdings if the price dips to ₹1,300. Keep stop-loss at ₹1,250 at first. Move it up to ₹1,340 when the stock rises above ₹1,400. Further tighten the stop-loss to ₹1,400 when the price hits ₹1,450. Book profits at ₹1,500.
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