Q2 impact: Upside of up to 14% on cards for ITC, Axis Bank, Dixon Tech

Among prominent stocks, ITC, Dixon Technologies, Axis Bank and Bajaj Finance seem poised to rally up to 14 per cent; whereas Asian Paints is seen testing the crucial 200-DMA level at Rs 3,131.

Shares of Axis Bank, Dixon Technologies (India) and ITC logged strong gains Friday as these companies beat Street estimates on the earnings front for the July-September quarter (Q2FY23). Axis Bank zoomed 6 per cent, Dixon Technologies (India) spiked 3 per cent and ITC added 0.50 per cent in intra-day trade so far. 

After clocking a 70 per cent yearly rise in net profit for the quarter, Axis Bank touched a new historic peak of Rs 879, leaping over its previous high registered in 2021.

ITC too claimed an all-time high of Rs 353.20, as of 10:30 am, helped by a 24 per cent yearly growth in net profit. 

On the other hand, Bajaj Finance was down 1.3 per cent despite the company posting its highest-ever quarterly profit in Q2FY23. Asian Paints also slipped over 1 per cent as its profit came below expectations. The paint makers net was down 22 per cent sequentially.

Here’s a technical outlook on these stocks: 

Axis Bank Ltd (AXISBANK)

Likely target: Rs 1,000

Upside potential: 14 per cent

There is an immense breakout on the daily chart of Axis Bank, as it claims a new historic peak. The crossing of 2021 high has opened the door for the next rally that can enter the four-digit club reaching Rs 1,000 mark. The immediate support for the stock exists at Rs 840 level. The bulls have resumed the upward trend with a robust gap-up and resiliently hold ground over the 200-day moving average (DMA), currently set at Rs 723. CLICK HERE FOR THE CHART

Also read:  Axis Bank Q2: Analysts see up to 37% upside on sustained earnings growth 

Dixon Technologies (India) Ltd (DIXON)

Likely target: Rs 4,700 and Rs 5,000

Upside potential:  6.5 per cent to 13 per cent

The recent “Ascending triangle” breakout over the Rs 4,000-mark on the daily chart triggered a positive bias for the stock. Thus, until this floor of Rs 4,000 is defended, the scrip is poised to regain Rs 4,600 level and could even rally to the Rs 5,000-mark thereafter. Sustainability over Rs 4,700 shall trigger fresh long positions. The immediate support for the stock stays at Rs 4,100. CLICK HERE FOR THE CHART

ITC Ltd (ITC)

Likely target: Rs 400

Upside potential: 14 per cent

ITC has performed relatively better since the beginning of this year. The stock has gained 78 per cent in 2022 with the rally continuing to seize higher grounds. Until the support base of Rs 340 and Rs 320 are not dismantled, the up-run is here to stay, as the bulls are seen marching towards the Rs 400-level without any hesitation. CLICK HERE FOR THE CHART

Bajaj Finance Ltd (BAJFINANCE)

Likely target: Rs 8,500 (once hurdle range is taken off)

Upside potential: 13 per cent

The financial services provider is grappling to take out selling pressure currently in the range of Rs 7,800 to Rs 7,600 levels. Once this happens, it could prompt a rally to Rs 8,500 level, according to the daily chart. On a short-term basis, the support for Bajaj Finance comes at Rs 7,000-mark. CLICK HERE FOR THE CHART

Asian Paints Ltd (ASIANPAINT) 

Outlook: 200-DMA remains key

While there is a “Golden Cross” formation with a breakout over Rs 3,500 that was seen in September, the follow-up selling failed dismantled the bullish hopes. Subsequently, a dip beneath 50-DMA led to more weakness in the stock since early October. 

Presently, the stock seems to be losing grip of the 200-DMA positioned at Rs 3,131 and if that materializes, the counter could plummet into the bear zone. A weakness in the Moving Average Convergence Divergence (MACD) might see the share price falling to Rs 2,900 level. CLICK HERE FOR THE CHART