The upmove in Axis Bank seems to be gaining momentum. The stock surged about 6 per cent on Thursday. It has closed just below a key resistance level of ₹1,130. We see high chances for the stock to breach this resistance from here. Such a break will boost the bullish momentum. It will then clear the way for a strong rise towards ₹1,230 over the next few weeks. Support is at ₹1,085.
This can limit the downside if the resistance at ₹1,130 holds on its first test. Traders can go long now at ₹1,127. Accumulate on dips at ₹1,095. Keep the stop-loss initially at ₹1,060. Trail the stop-loss up to ₹1,160 as soon as the stock moves up to ₹1,185. Move the stop-loss further up to ₹1,195 when the price touches ₹1,210. Exit the stock at ₹1,220.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)