Buy Axis Bank with target of Rs 770: Gajendra Prabu, HDFC Securities
Axis Bank has been trading low for last few quarters as the bank was having higher NPA levels and exposure to stressed assets. The bank has reported massive amount as provisions and the stock suffered due to bad performing loans. However, the bad times have probably finished and the management is confident about future of Axis Bank.
Gajendra Prabu, Technical Research Analyst at HDFC Securities feels that Axis Bank is the only heavyweight private bank, which trades well below its lifetime high. It is expected to join its peers in the coming days. If not a lifetime high, the stock will see at least some meaningful upward retracement. A faster upward retracement has been seen in the last rise from Rs 622 to Rs 733, which confirms a bullish reversal.
The stock has formed higher top on the daily chart and can maintain this, which is the initial part of the continuation structure. Technical indicators like MACD & DMI are placed with a positive sign, which may add strength to the positive momentum. Traders may look to buy the stock at the current market price and add on dips to Rs 690 for an upside target of Rs 770 over the next 2-3 weeks.
Stop loss for Axis Bank: Rs 670.
Investors should conduct due-diligence before making investment decisions.