Buy Axis Bank in range of Rs. 455-465
Target: Rs. 545
Stop Loss: Rs. 416
Time frame: Three months
Derivatives & Quantitative Outlook
Banking stocks have relatively underperformed in the last few months while the broader market has seen a good recovery. Most banking stocks remained largely range bound in the last six months. However, heavily beaten down stocks from the sector have started exhibiting relative outperformance in the recent up move.
Unlike other stocks, the open interest in Axis Bank remained high as it has remained under pressure since July 2019. The sell-off in March has been quite relentless as the stock got dragged below Rs. 300 levels from highs of Rs. 750, which were seen in February 2020. A significant sell off in the stock has risen in open interest. The first few sessions of the new series saw closure of open interest suggesting continuing short covering. We believe ongoing short covering will continue, which should take the stock higher.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_AxisBank_Oct20.pdf
Shares of AXIS BANK LTD. was last trading in BSE at Rs.467.95 as compared to the previous close of Rs. 468.2. The total number of shares traded during the day was 984782 in over 19516 trades.
The stock hit an intraday high of Rs. 479.9 and intraday low of 462.3. The net turnover during the day was Rs. 462806236.