Axis Bank gives trendline breakout

Vinayak Gangule
/ Categories: Trending
Axis Bank gives trendline breakout

Considering the daily timeframe, the stock of Axis Bank Limited has given a downward sloping trendline breakout, formed by connecting swing highs since November 2020. This breakout is confirmed by the above 50-day average volume. Additionally, the stock had formed a bullish opening Marubozu candle on the breakout day, which indicates extreme bullishness.   

The derivatives data is also suggesting a long build-up in the stock. On Tuesday, January series stock future of Axis Bank saw 49,47,600 addition of open interest, which is 10.54 per cent addition in the open interest. It indicates that there is a long build-up in the market. January month's current open interest is 5,18,77,200. For January expiry, the open interest wise put-call ratio (PCR) is at 0.86.   

Currently, the stock is trading above its short and long-term moving averages, i.e. 20-day, 50-day, 100-day, and 200-day EMAs, and these moving averages are exactly in an ascending order, which suggests that the trend is strong.  

The stock's relative strength index (RSI) has reached its highest value in the last 14-days, which is bullish. Also, it has managed to close above its prior swing high. The stochastic oscillator has also given a positive crossover. Moreover, the weekly and daily MACD stays bullish as it is trading above its zero line and signal line. The daily histogram is suggesting a pickup in the upside momentum.   

Going ahead, we expect the bias to remain positive as long as the stock sustains above the zone of Rs 616-Rs 610 levels. On the higher side, the level of Rs 677, followed by Rs 695 would be seen as the next resistance zone for the stock.      

On Tuesday, the stock of Axis Bank surged by 6.36 per cent and closed at Rs 664.45 per share. The stock opened at Rs 618 per share and hit an intraday high of Rs 667.90 & a low of Rs 618 per share on NSE. 

Rate this article:
4.2

Leave a comment

Add comment

DSIJ MINDSHARE

Mkt Commentary28-Mar, 2024

Multibaggers28-Mar, 2024

Interviews28-Mar, 2024

Multibaggers28-Mar, 2024

Multibaggers28-Mar, 2024

Knowledge

General26-Mar, 2024

MF25-Mar, 2024

General18-Mar, 2024

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR