Chart check: Here's why Mehul Kothari recommends buying Axis Bank, TCS

According to the technical analyst from Anand Rathi, one can accumulate Axis Bank in the range of Rs 663 - 657 with a stop at Rs 630.

BUY

AXIS BANK

TARGET: Rs 715

STOP LOSS: Rs 630

In the past few sessions, we witnessed a massive corrective move in AXIS BANK where the stock turned from Rs 800 mark and is now trading near Rs 650 level. The zone of 650 – 630 has acted as a reversal zone for the stock more than thrice in the past one year. 

The zone coincides with the placement of its 200 week’s moving average. Thus, traders can accumulate the stock in the range of Rs 663 - 657 with a stop loss of Rs 630 for an upside target of Rs 715 in the coming 1 – 3 weeks.

BUY

TCS

TARGET: Rs 3,650

STOP LOSS: Rs 3,300

Even TCS has been in a corrective mode since quite some time and recently it came down from the peak of Rs 3,800 towards the low of Rs 3,350. At this point in time, the stock is trading near its multiple support level of Rs 3350. This level has acted as a strong demand zone for the stock since October 2021.

In addition, we are witnessing a positive divergence in daily RSI which indicates possibility of reversal. Thus we advise traders to go long in the stock in the range of Rs 3,450 – 3,400 with a stop loss of Rs 3,300 for an upside target of Rs 3,650 in the next 1 – 3 months.

(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).