AU Small Finance Bank (₹565.75)
Finding Strong Support
AU Small Finance Bank’s stock has been on a steady uptrend for the past two weeks, bouncing off a support level at ₹500. The formation of a bullish pin bar candlestick signals a possible reversal in the current trend. The price range of ₹470-500 has consistently acted as a strong support zone since May 2021, indicating a solid foundation for the stock.
Given these factors, there is a high likelihood of the stock rallying from its current levels, possibly reaching ₹730. Traders can consider initiating long positions in AU Small Finance Bank at ₹565 and adding to their positions at ₹530. A stop-loss can be placed at ₹460. As the stock climbs to ₹640, the stop-loss can be revised to ₹540, and further adjusted to ₹650 when the price reaches ₹700. The potential exit point for this trade is at ₹730.
Axis Bank (₹1,015.85)
Resistance Ahead
Axis Bank’s stock has been in a downward trend since July of the previous year, with the ₹1,325 resistance level triggering a decline. While there has been some recovery in recent weeks, the stock is likely to face strong resistance in the ₹1,030-1,050 range. Given this scenario, we anticipate the stock to resume its downward trajectory, possibly dropping to ₹900 in the short term.
To take advantage of this expected decline, traders can short Axis Bank at ₹1,020 and ₹1,040, with a stop-loss set at ₹1,070. Once the price hits ₹950, the stop-loss can be adjusted to ₹1,000, and further trailed to ₹960 as the stock approaches ₹925. The trade can be closed out at ₹900.
Cholamandalam Investment and Finance Company (₹1,400.45)
Breaking Resistance
Cholamandalam Investment and Finance Company’s stock has been in an upward trend since late January, finding support at ₹1,180 and breaking through a key resistance level at ₹1,350 in early February. The formation of an ascending triangle pattern over the past month confirms the bullish outlook for the stock.
With a potential upside target of ₹1,640, traders can consider buying the stock at ₹1,400 and adding to their positions at ₹1,370. A stop-loss can be placed at ₹1,300. As the price climbs to ₹1,520, the stop-loss can be modified to ₹1,400, and further raised to ₹1,500 once the stock hits ₹1,600. The trade can be exited at ₹1,640.
Published on March 1, 2025.
