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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.

Photo: Bloomberg
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Photo: Bloomberg

Nandish Shah Mumbai
Derivative Strategy

Recommendation on Axis Bank

Sell Axis Bank 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 Axis Bank 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)

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First Published: Sep 30 2022 | 7:34 AM IST

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