Axis Bank Ltd.
Fundamental views:
1. Axis Bank is the third largest private sector bank in India with market cap of 222591 Cr.
2. The company has delivered a low sales growth of 9.33% over past five years.
3. Though the company is reporting repeated profits, it is not paying out dividend.
4. Promoter holding has decreased over last 3 years: -14.27%.
5. Promoter holding is low: 11.64%.
6. Company has a low return on equity of 5.92% for last 3 years.
7. Company has negative cash flow.
Technical views:
1. RSI is traded above 50 on daily chart.
2. True strength indicator is above 0 line.
3. Price broke its previous resistance level of 710 and now coming for Re-test that level.
4. Previous resistance level now act as support.
5. 20 DMA cuts the 50 DMA on upside.
According to me, Fundamentally stock is weak. so it not looking good for investment purpose. But stock given breakout above 710 level after 2 months on daily chart. Now it comes towards 710 level to re-test this.
for short term swing trading, this is best entry setup for long. Stop loss will be 695 on closing basis and target will be 790.
Disclaimer: I am not SEBI registered. Stock we discussed here only for educational purpose. I might have this stock in my portfolio. Please do research your own or consult with your financial advisor before investing and trading.
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