Axis Bank can jump up to 7% post Citi deal; needs to hold 200-DMA

The current momentum, which is showing stability above 200-DMA could see a gradual rally towards Rs 800 to Rs 815 levels, its next hurdle zone.

The acquisition of Citibank’s India consumer business by Axis Bank did not elicit much enthusiasm in the opening trades for the latter's stock on the NSE and BSE. Shares of Axis Bank opened 1.6 per cent higher at Rs 763, and have traded sideways so far in the day.

Axis Bank’s 52-week high stands at Rs 866.90 recorded in November 2021. The stock trades 19 per cent higher from its recent low of Rs 637. Any positive fundamental development in the business front, adds value, and the same impacts reflected in the share price. This consensus view of investors seems to favour of the stock price moving higher in the future.

Here’s outlook for Axis Bank basis on the charts for the upcoming sessions:-

Axis Bank Ltd (AXISBANK)
Likely target: Rs 815
Upside potential:  7%

The shares of Axis Bank are making efforts to sustain above the Rs 746.30-mark, which is its 200-day moving average (DMA). The trendline support comes at Rs 735 levels. The Moving Average Convergence Divergence (MACD) attempts to conquer the zero line upward. If that happens, the momentum could gain strength leading to an upward rise in the stock price, indicates the daily chart.

The medium-term outlook seems well poised above the support of the 200-weekly moving average (WMA) placed at Rs 651 level.

The current momentum, which is showing stability above 200-DMA could see a gradual rally towards Rs 800 to Rs 815 levels, its next hurdle area.

One can observe the accumulation happening in the range of Rs 650 to Rs 620, from where the stock witnessed a decent reversal in past one year. CLICK HERE FOR THE CHART