Big Movers on D-St: What should investors do with Axis Bank, IDBI Bank and Maruti Suzuki?

The domestic market closed higher on Monday tracking strong global cues. The S&P BSE Sensex rose more than 300 points while the Nifty50 closed above 18,100 levels.

Sectorally, buying was seen in IT, healthcare, banks, FMCG, and auto stocks while some selling was visible in realty, power, and capital goods stocks.

Stocks that were in focus include names like Axis Bank which closed flat with a positive bias ahead of its Q3 results, IDBI Bank rose 0.6% post results, and Maruti Suzuki India fell ahead of its Q3 results on Tuesday.

Here's what Jatin Gohil, Technical and Derivative Research Analyst, Reliance Securities Limited at recommends investors should do with these stocks when the market resumes trading today:

Axis Bank – Neutral
After a higher level of reversal (Rs 970-907), the stock took support around its mid-December 2022 low (Rs 904) and retraced 50% of its down move. The stock remained range bound ahead of its quarterly result.

In case the stock violates its mid-December 2022 low, undergoing negative momentum may accelerate. This could drag the stock towards its lowest level of November 2022 (Rs 841).

However, a stable move above Rs 940 could support the stock to move towards Rs 970-1,000 levels.

IDBI Bank – Buy on dips
The stock respected its medium-term supply zone (Rs 65-66), as it reversed before testing it and oscillated in the narrow range ahead of its quarterly result.

Since August 2022, the stock has taken support of its 20-week EMA (Rs 51) and resumed its up-move. As per the current set-up, fresh long positions can be initiated on dips for a better risk reward.

In case the stock violates its 20-week EMA, probable up-move will be negated.

Maruti Suzuki - Buy
In the past, the stock bounced after 2 months of consecutive decline and resumed its prevailing rising trend, wherein its 20-month EMA (Rs 8,165) worked as a key reversal point.

Since November 2022, the stock has remained in pressure and is currently oscillating around a 20-month EMA. The stock may witness near-term volatility, as its quarterly result is scheduled on 24th January 2023.

As per the current set-up, risk-reward is favorable for a fresh long trade. In case history repeats itself, the stock may resume its up-move, which could lead it towards Rs 9,200 initially and Rs 9,450 subsequently. However, a convincing move below its 20-month EMA will invalidate a probable rise in the stock.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)