Structure Reading of Strong stocksStructure Reading of Strong stocks. How to read similar strong stocks but different structure.
AXISBANK
Parallel Channel- A great tool for Identifying Trends
A parallel channel which can also be termed as a price channel is a tool to identify a share’s price in bounded parallel lines. It can be horizontal, ascending or descending. It’s a great tool for those traders who believe or trades with the idea of Price action.
A parallel channel can be formed when the price of a security is restricted by supply and demand and can be upward, downward or sideways trending. It shows the trend on which the security might be headed towards or on the verge of breaking it to reverse its direction. It can occur on various time frames and can be created on various instruments like stock, mutual funds, ETFs etc.
The two parallel lines act just like the Resistance and Support. The upper line acts like the Resistance and the lower line acts like Support. A lower trendline is when the price pivots higher, and an upper trendline when the price pivots lower. The steepness of the parallel lines decides the direction of the price it moves.
Ascending channel will be bounded by positive lines indicating that the price is trending higher with each closing of the bar. Likewise, a breakdown of the lower line means that price has moved significantly and now it will see some profit booking and makes a good opportunity for profit booking.
Descending channel indicates that price is trending lower with each bar it is forming. Whereas a breakout of the upper channel conveys that the trend has changed and now the price will move upwards.
As in this example of Axis Bank Daily chart, you could see a Descending Parallel channel which did retrace to its lower price channel and that makes it a good entry point after which it broke the upper channel with good volume confirming its upwards rally.
NIFTY BANK Vs PSU Bank Vs Private Bank I was wondering who is pushing the Bank Nifty, so I decided to visualize this by this simple comparison.
The three major PSU banks are compared with the NIFTY BANK there market cap is as follow
3 (25%) PSU banks out of 12 holds 28.05186836 % of NIFTY BANK VALUE.
9 (75%) Private banks out of 12 holds 71.94813164 % of NIFTY BANK.
YoY in % YTD in % 30 mar to 18 Nov in %
BANK NIFTY -5.56 -8.14 57.31
PSU BANK* -41.95 -43.64 6.03
State Bank Of India -25.47 -26.3 31.7
Punjab National Bank -49.1 -52.8 -7.29
Bank Of Baroda -51.28 -51.82 -6.32
PRIVATE BANK** -17.32 -19.41 62.00
INDUSINDBK -42.02 -45.4 96.12
AXISBANK -13.6 -15.58 72.68
ICICIBANK -1.29 -8.21 56.2
HDFCBANK 11.16 9.92 68.91
RBLBANK -32.71 -36.7 47.8
KOTAKBANK 12.16 9.91 42.9
BANDHANBNK -37.12 -29.3 66.43
FEDERALBNK -32.51 -33.8 45
IDFCFIRSTB -20 -25.6 62
*Average of PSU banks included in NIFTY BANK only
** Average of Private banks included in NIFTY BANK only
(YoY) in % YTD in % 30 mar to 18 Nov in %
BANK NIFTY -5.56 -8.14 57.31
PRIVATE BANK** -17.32 -19.41 62.00
PSU BANK* -41.95 -43.64 6.03
Where BANK NIFTY is down by 5.5% PSU BANK* is down by 41.9% on YoY basis.
After 30 march 2020 where BANK NIFTY is up by 57.3% PSU BANK* is only up by 6% even though PSU banks holds 28.05186836 % of NIFTY BANK VALUE.
It is interesting to see that after 30 march 2020 ,the 28.05 %(%value in Bank Nifty) of 57.3 is 16.7 that means PSU BANKS** contribution in Bank Nifty is lagging by (16.7-6=10.7)10.7%
It is interesting to see that after 30 march 2020 ,the 71.94 %(%value in Bank Nifty ) of 57.3 is 41.24 that means Private BANKS** contribution in Bank Nifty is leading by(62-41.24=20.76) 20.76%
With the above observation it is clear that at least PSU banks included in NIFTY BANK are the ultimate underperformers and the move of NIFTY BANK is solely because of the Private banks in NIFTY BANK in the last two years
Data Taken from nseindia official website.
Let me now what's your take on the above observation in comments and also comment about such bad performance of PSU banks.
anatomy of breakout tradehello traders,
this is my tutorial post.
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AXIS BANKIt is on the verge of an Inverse Head & Shoulder Breakout at 445. It could rise till 475-490 (with minor resistance at 455-460 - island reversal zone) as long as it does not breach 435
AXIS BANKIt is on the verge of a breakout above 440 in daily time frame which indicates further upside 1st till 465 and then till 520 as per weekly time frame. The view would be negated below 425
BUY AXISBuy Axis Bank above 418 if the Underlying tries to sustain about that level with the target of 431. With Stop loss of 403. (INTRADAY CALL). As the Axis Bank has showed a buying signal above 405
And if Nifty tries to stay stable above 10,000 .
AXIS Bank Results tradeOn breakout trigger buy
Any reversal at resistance trigger sell
#AxisBank RESULT OVERVIEW:
🟢 Net Income: ₹10,793 Cr (+17% ▲)
🟢 Net NPA: 1.56% (-50 bps ▼)
🔴 Net Profit: -₹1,388 Cr
🔴 CASA: 40.4% (-270 bps ▼)
🟢 Advances: ₹5,59,122 Cr (+15% ▲)
🟢 Deposits: ₹6,14,419 Cr (+17% ▲)
🟢 Balance Sheet: ₹9,15,164 Cr (+14% ▲)
🔸Overall the results look positive as the bank has mostly reported a healthy growth on most parameters.
🔸The asset quality of the bank has improved.
🔸The net loss reported is mainly due to the provisions and one-time tax adjustments.
🔸Axis Bank GDR is trading at +10% after the Q4-FY20 results.
🔸We can expect a similar move in the Indian markets tomorrow.
🔸The GDR up move indicates that the markets have received the results on a positive note.
