Axis Bank set to rally above 555, despite poor Q2

When most of the heavyweight banks are trading southwards, Axis Bank on Monday stood apart and surged more than 2 per cent occupying the highest position in Nifty 50 index. Overall, benchmark indices washed off seven days winning streak after international rating agency, S&P maintained India’s sovereign rating at BBB-minus.

Axis Bank, India’s third largest private sector bank, which holds nearly 8 per cent weightage in Bank Nifty is all set to show some silver lining. The stock bounced back soon after it fell more than 13 per cent in a single week as a result of reporting poor Q2FY18 results on October 17, amid huge gross slippages.

Technically, considering the weekly time frame, the stock witnessed a breather of two weeks after three consecutive upticks followed by the results week. On a daily basis, the stock has consolidated for nearly 15 trading sessions during November 2017 with consistent attempts to breach its prolonged resistance at 555 levels on a closing basis.

The stock of Axis Bank witnessed some justifiable volumes during these days, while 14-period RSI trailed between 57-61 levels. On Monday, the stock has duly broken out of its resistance at 555 with slightly risen volumes and positive RSI crossover quoting at 65. With this up move, we see a great potential in the stock if it sustains above the 555 levels on a closing basis in the coming sessions.