The immediate support for the Axis Bank Nifty is placed near its 21 DMA at 17400 levels and the upper band of the index is capped at 18000 levels. The week for the benchmark index was a very volatile and a mix bagged as the prices started with a positive tick and closed in red for three consecutive days and closed above 17700 levels. The prices are sustained well above their 21 & 50 with the day exponential moving average on the daily as well as the weekly time frame.
The weekly momentum oscillator RSI has broken out of a falling channel pattern above 50 points and is now holding above 55 points, with a bullish crossing on the horizon. On a daily time frame, India VIX continues to trade below the 21-day moving average, and it has also been trading below the 20-day moving average in recent days. A lower VIX index is a favourable indication for traders since it means less volatility and a more consistent trend.
Since a few weeks, Axis Bank has regularly outperformed its peers’ equities and has delivered a downward sloping trend line breakout on the daily time frame. The counter finished above its five-week high after reaching the bottom band of the trend line, which is at 660 levels, and has delivered spectacular gains of 20% in just one month.
M&MFIN gets a “Buy” recommendation since it has gained more than 30% in less than a month, indicating that bulls are back in the game. MFIN prices are projected to move higher towards 190 levels based on the general price pattern and recent breakthrough.
Prior to the breakout, prices stabilised for about seven trading days, and we saw above-average volume activity throughout that time, indicating that the counter is in the accumulation stage. The stock price is likely to trade higher towards 190 levels, based on the general price structure and recent breakthrough.