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Derivatives analyst Nandish Shah recommends selling Axis Bank futures

The analyst from HDFC Securities recommends selling Axis Bank October contract on rise with a stop loss at Rs 745, for a downside target of Rs 705.

Topics
Axis Bank | F&O Strategies | Stock Recommendations

Nandish Shah  |  Mumbai 



Photo: Bloomberg
Photo: Bloomberg

Derivative Strategy

Recommendation on Axis Bank

Sell October future

CMP: Rs 718.5

Sell around: Rs 730

Stop Loss: Rs 745

Target: Rs 705

Lot Size: 1,200

Rationale:

  • We have seen short build up in the futures, where price has fallen along with the sharp rise in the Open Interest during last few days.
  • The stock price has given a bearish breakout from the upward sloping trendline, adjoining the lows of 23-June and 29-August 2022 on the daily chart.
  • The primary trend of the stock has turned negative as stock price closed below its 200 day EMA.
  • The momentum oscillators like RSI (11) and MFI (10) are in falling mode and placed below 40 on the daily chart, Indicating strength in the current downtrend.

Disclaimer: Nandish Shah is Technical Research Analyst at HDFC Securities. He doesn't hold any position in the stock. Views are personal.


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First Published: Fri, September 30 2022. 07:34 IST

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