Bajaj Fin, Axis Bank, Maruti Suzuki: Strategies for stocks post Q4 results

Upon crossing the immediate resistance, Axis Bank's stock may see a rally towards Rs 750 and Rs 765-mark

March quarter results have begun to pour-in and early birds' results shows that the season is off to a good start. The combined net profit of 81 companies that declared their quarterly results by Monday evening is up 36.2 per cent year-on-year (YoY). These companies reported all-time high net profits of Rs 39,540 crore in Q4FY21, up from Rs 29,033 crore a year ago. The companies’ combined revenues, including banks’ other income and fee income, were up 35.8 per cent YoY during Q4FY21. Growth was amplified by a low base in the corresponding quarter a year ago.

The earnings are, however, down 4 per cent on a quarter-on-quarter basis, hinting at a plateauing of corporate profitability after three quarters of recovery from Covid-19 lockdown. READ ABOUT IT HERE

So far in the current week, many financial and auto firms have reported a mixed set of numbers. Private sector lender Axis Bank, for instance, reported a net profit of Rs 2,677 crore in the March quarter of FY21, beating Street estimates, on account of lower provisions and good net interest income (NII). In the same period of last financial year, the bank had reported a net loss of Rs 1,388 crore. To that effect, shares of the lender gained 2 per cent in the early deals on the BSE but pared gains to slip over 1 per cent.

Meanwhile those of Maruti Suzuki were flat at Rs 6,600 after the auto-manufacturer's net profit declined 10 per cent YoY to Rs 1,166 crore against expectations of up to 50 per cent yearly growth.

That apart, shares of SBI Card, Britannia Industries, and Bajaj Finance gained between -1 per cent and 6 per cent on the BSE in the intr-day trade today.

Here's how to trade these stocks post their Q4 results:  

Axis Bank Ltd (AXISBANK)

Likely target: Rs 750 - Rs 765 (upon crossing Rs 716)

Upside potential: 4.75% - 6.84%

This stock has shown a reversal near the support of Rs 625-mark. The move has crossed the 100-days moving average (DMA) set at Rs 683 levels. Now, the stock needs to cross the 50-DMA, located at Rs 716 levels, as per the daily chart to rally further. The overall momentum looks strong with the breakout of 'Inverse Head and Shoulder' formation on the Relative Strength Index (RSI). Upon crossing the immediate resistance, the lender's stock may see a rally towards Rs 750 and Rs 765 mark. CLICK HERE FOR THE CHART
 
Maruti Suzuki India (MARUTI)

Likely target: Rs 7,000 (after crossing Rs 6,800)

Upside potential: 2.94%

The stock has formed a "Death Cross" of 200-DMA and 50-DMA, as per the daily chart. This signifies weakness in the stock and, if major supports gets broken, the counter may enter in a bearish mode. The immediate crucial support stands at Rs 6,400 levels. However, on the flip side, if the stock manages to cross the immediate closing basis resistance of Rs 6,800 mark, the momentum may see a rally towards Rs 7,000 levels, which is its current 50-DMA. CLICK HERE FOR THE CHART
 
SBI Cards and Payment Services Limited (SBICARD)

Likely target: 100 to 150 points after consolidation breakout

Upside potential: Nearly 10% after breakout 

The stock is currently consolidating between 200-DMA and 50-DMA moving averages, currently placed at Rs 880 and Rs 994 levels, respectively. If the stock does not breach this range, the momentum may stay side-line. Upon the breakout, one can expect a rally of 100 to 150 points on the counter, as per the daily structure. CLICK HERE FOR THE CHART
 
Britannia Industries Limited (BRITANNIA)

Likely target: Rs 3,640 (if Rs 3,400 is held firmly)

Upside potential: 3.41%

The stock of the FMCG major is continuously failing to conquer the resistance of Rs 3,800 decisively. Due to this, the price strength breached the 200-DMA, resulting in a sharp decline recently. Going forward, till the counter does not cross Rs 3,640 levels, which is its 200-DMA, the negative bias may see sideways movement. On the downside, the closing basis support comes at Rs 3,400 levels. CLICK HERE FOR THE CHART
 
Bajaj Finance Limited (BAJFINANCE)

Likely target: Rs 5,140 - Rs 5,221

Upside potential: 1.94% - 3.55%

The stock is heading towards Rs 5,140 and Rs 5,221 levels, which are its 100-DMA and 50-DMA, respectively. This move has seen a firm recovery near the 200-DMA which is placed at Rs 4,346 mark. The overall trend looks bullish with the Moving Average Convergence Divergence (MACD) making a positive crossover, as per the daily chart. The immediate support comes at Rs 4,750 levels. CLICK HERE FOR THE CHART