AXISBANK - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.7

📊 Chart Patterns & Trend: AXISBANK is consolidating near its recent high of 1,304 ₹. The current price (1,231 ₹) is slightly below the 50 DMA (1,236 ₹) but above the 200 DMA (1,171 ₹), indicating short-term weakness but medium-term support. The stock is in a sideways consolidation phase.

📈 Moving Averages:

- Price is hovering around the 50 DMA, showing indecision.

- Trading above the 200 DMA suggests medium-term bullish undertone.

- A breakout above 1,236 ₹ could trigger momentum toward 1,300 ₹.

📉 RSI: At 41.1, RSI is weak but not oversold, reflecting limited buying strength.

📈 MACD: Slightly positive (0.39), showing neutral momentum with no strong bullish or bearish signals.

📊 Bollinger Bands: Price is near the mid-band, confirming consolidation with no breakout yet.

📊 Volume Trends: Current volume (38,08,958) is below the 1-week average (56,14,972), suggesting reduced participation and lack of strong momentum.

🎯 Entry Zone: 1,210–1,220 ₹ (near support).

🎯 Exit Zone: 1,290–1,300 ₹ (near resistance).

⚡ Support Levels: 1,210 ₹ and 1,171 ₹.

⚡ Resistance Levels: 1,236 ₹ and 1,304 ₹.

Positive

• Strong ROE (16.0%) indicates efficient profitability.
• EPS of 78.5 ₹ supports earnings visibility.
• DII holdings increased (+1.65%), showing domestic institutional confidence.
• PEG ratio of 0.59 suggests reasonable valuation relative to growth.

Limitation

• ROCE is weak at 6.95%, reflecting modest capital efficiency.
• High debt-to-equity ratio (7.39) compared to peers.
• Quarterly PAT declined from 5,806 Cr. to 5,090 Cr. (-26.4%).
• FII holdings decreased (-1.92%), showing reduced foreign investor interest.

Company Negative News

• Quarterly profit decline raises concerns about earnings momentum.
• Weak ROCE and high leverage compared to industry standards.
• Volume participation lower than average, limiting short-term momentum.

Company Positive News

• EPS remains strong at 78.5 ₹ despite profit decline.
• DII inflows (+1.65%) reflect domestic investor confidence.
• Stock trading above 200 DMA shows medium-term resilience.

Industry

• Industry P/E at 14.7, close to AXISBANK’s P/E of 15.8, suggesting fair valuation.
• Banking sector outlook remains stable with strong credit growth expectations.

Conclusion

⚖️ AXISBANK is consolidating with neutral MACD and weak RSI, showing indecision near resistance. Short-term traders may consider entry around 1,210–1,220 ₹ with exits near 1,290–1,300 ₹. The stock is consolidating, awaiting a breakout above 1,236–1,304 ₹ for trend continuation.