Chart of the Week (16/01/2021): Axis Bank

Jan 15, 2021

Axis Bank looks like a good buy candidate as it has given good breakouts on all trendlines. Even a downward sloping resistance line has now been cut and should act as a support. Another rationale is that other banks (ICICI Bank, Kotak Bank, HDFC Bank) have run up and are at 52-week high/ATH. Maintain Stop Loss at Rs.640 and targets at Rs.765 and then at Rs.820 (ATH). The one negative thing on this chart is the Negative RSI Divergence, but divergences can act only as confirmation/support and should never be a rationale for trading. Hence one needs to be cautious.