Axis Bank - Gladiator Stocks - ICICI Securities

Posted On : 2020-08-19 18:59:02( TIMEZONE : IST )

Axis Bank - Gladiator Stocks - ICICI Securities


Buy Axis Bank in the range of Rs. 435.00-450.00 for target price of Rs. 522.00 with a stop loss of Rs. 405.00. Time Frame: Six months

Technical View

The stock has generated a breakout above the last four months triangular consolidation pattern indicating conclusion of corrective phase and resumption of fresh up move. Hence offering fresh entry opportunity with a favourable risk reward set up

The share price in the last two months has formed a strong support base around Rs. 410-420 levels. It has remain buoyant as it factored in most of negative news flows and formed a higher base for next leg of up move

It has already taken 18 weeks to retrace less than 80% of the preceding four week's up move (Rs. 286-486). A slower retracement signals a higher base formation and overall positive price structure

We believe the consolidation phase has approached maturity. It is expected to resume its up move and head towards Rs. 522 in the medium term as it the confluence of the previous major breakdown area and 50% retracement of the February- March decline (Rs. 760-286) around Rs. 522 levels

Fundamental View

Axis Bank, the third largest private bank in terms of advances, offers the entire spectrum of financial services to customers covering large and mid-corporates, MSME, agriculture and retail businesses. The long term focus is on loans offering higher return on risk-weighted basis and tight control on cost to enhance return ratios. In a bid to gain traction in the life insurance sector, Axis Bank entered into a transaction with Max Financial, which post completion will become 70:30 JV in Max Life Insurance

Covid-19 and related lockdown would delay a revival in RoE. However, given healthy asset mix, liability strength, adequate capital and superior customer profile, we believe the bank is poised to face near term challenges and benefit in the phase of normalisation. Hence, we remain positive on the fundamentals of the stock

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Shares of AXIS BANK LTD. was last trading in BSE at Rs.444.1 as compared to the previous close of Rs. 445.7. The total number of shares traded during the day was 358968 in over 5314 trades.

The stock hit an intraday high of Rs. 451.9 and intraday low of 442.5. The net turnover during the day was Rs. 160766071.

Source : Equity Bulls