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I want to invest in the shares of Axis Bank for the long term. Please let me know the technical outlook for this stock.
GB Rajeswar Reddy
Axis Bank (687.65) : The stock is hovering above a key support level of ₹655. Supports are also available at ₹625 and ₹590. As such we can consider ₹655-₹590 as a broad support zone for the stock. You can consider buying the stock at different levels as follows. Buy 25 per cent of the total intended amount at ₹660. Then accumulate another 35 per cent at ₹630. The balance 40 per cent can be bought at ₹605. A fresh rally from the ₹655-₹590 zone may have the potential to target ₹1,050 over the long term. The stock will come under threat for a steeper fall only if it breaks below ₹590 decisively. Such a break will increase the danger of the stock tumbling towards ₹500-₹450 or even lower. So, you will have to have a stop-loss at ₹520 and exit with a loss. If that happens, then you can wait for some time to enter the stock at better and lower levels.
I hold the shares of Karnataka Bank bought at an average price of ₹120. Should I hold the shares or book loss or buy some more to average the price?
S Subramanyan
Karnataka Bank (₹68.35 ): The stock is struggling to gain momentum and recover. The stock has room to test ₹55 from here in the near term.
Also, a strong rise past ₹82 is necessarily needed for the stock to come back into the bullish zone. But that looks very difficult on the charts, and could take a lot of time. You can very well exit this stock and book loss. You can consider investing the sales proceeds of this stock in Axis Bank as advised in the previous question above.
Please give me the long-term outlook for the stock of JSW Steel. I bought this share at ₹690.
S Sankaran
JSW Steel (₹679.3) : The strong uptrend that was in place since April 2020 halted around ₹780 in May this year. Since then, the stock had consolidated below ₹780 and began to decline from August this year. It is now in a corrective phase of the broader uptrend. Key supports are at ₹590 and then at ₹520. The chances of the fall extending up to ₹520 in the coming months cannot be ruled out. However, the broader trend will continue to remain up. So, you can buy more and accumulate at ₹595 and then at ₹530. Keep a stop-loss at ₹390 and hold the stock for a long-term target of ₹950-₹970.
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