Top trending stock: Axis Bank
The stock of Axis Bank has soared over 5% on Thursday’s trading session and is one of the top performers among its peers.
Axis Bank is one the largest private bank in India with a market capitalization of Rs 2,16,500 crore. The stock has been a major contributor to today’s Nifty Bank rally.
The stock of Axis Bank has soared over 5% on Thursday’s trading session and is one of the top performers among its peers. It witnessed a huge gap-up and continued to trade higher in the first hour of the trade. The stock has hit a day’s high of Rs 720.35 and trades near it. It has seen a strong buying interest near its 200-week MA and has bounced back strongly from there. The stock has formed a bullish pinbar candle on the weekly timeframe. The strong price action is accompanied by above-average volume, which highlights larger trading activity in the stock.
After falling about 20% in the last few days owing to bad market sentiment, the stock has sharply reversed and recovered about 10% since its prior swing low. Moreover, several technical parameters are pointing towards the bullish reversal of the stock. The 14-period daily RSI has jumped from the oversold territory and is placed above 40. Interestingly, the OBV has indicated a bullish view from a volumes point of view. Along with this, the stock has crossed above its 38.2% Fibonacci retracement level. The other momentum oscillators and technical parameters also indicate improvement in the stock's strength.
The stock has grossly outperformed Nifty and most of its peers on a YTD basis. It has delivered about 5% returns as against negative 4% returns of the latter. Considering the strong price action and recent performance, the short term outlook remains bullish.
The stock is expected to test the level of Rs 750, which happens to be its 200-DMA, followed by Rs 760. Swing traders/Positional traders can expect decent returns from the stock in the short to medium term.
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