Thursday, June 11, 2009

Technical Call in AXIS BANK


A look at what is un-folding in this stock. The stock had no real major profit taking till mid MAY since its rise from 280 on March 9, 2009. Given below are what will happen in both bullish and bearish situations.

Scenario 1
It will rise facing resistance 1st @ 775 2nd @ 820 before finally exhausting near 860 and then start correcting upto 660 / 575.

Scenario 2
A rise from here till 775-790 where a whole lot of distribution will take place before it once again start moving down. This rise could be a bait for those who felt they missed out on the superb rise the stock had from its lows and enter now. The stock can correct then down to 575 / 485.

So what should one do in this case?
  1. If long then trail with a stop loss of 695. If it moves towards 790-820 then raise your stop loss to 760.
  2. If not long then entering the stock here for short to medium term returns looks like a high risk factor as upside has too many resistances. It would be wise to wait for a decent correction to buy the stock for higher % returns.
This is not an advise to SHORT the stock, as the sell trigger is yet to set in, only thing that charts suggest are no fresh buying.


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About Me


All opinions are based on my technical study; however, I do not vouch for the accuracy or the completeness of the matter. I am not liable for any potential damages that may be incurred while acting upon any information mentioned in this report. The views expressed are not of binding nature. The report is intended for a restricted audience & I am not soliciting any action based on it. Please exercise discretion and due diligence in making your decisions. Investments in Capital Markets are not my obligation or guarantee and are subject to investment risks. In no event will I be liable for any damages, including without limitation direct or indirect, special, incidental or consequential damages, losses or expenses arising in connection with this report or use thereof or inability to use by any party, or in connection with any failure of performance, error, omission, interruption, defect, delay in operation even if I am thereof, advised of the possibility of such damages, losses or expenses.