AXIS BANK vs BANK OF
It has been all of five weeks that Nifty Futures is hovering in the tight range of 6688 to 6902. We can assess that investors are losing steam in markets and want to keep wait and watch position on back of poll results which will be out on 16/May/2014.
For a week or so, nifty future will face strong support at 6680 to 6598. Looking over a derivative prospect, India VIX is trading at alarming stage at 34.06, which again says stay out of the markets and keep a dog watch. Maximum open interest can be seen in 7000 CE and 6400 PE, which says that 7000 will act as a strong resistance and 6400 will act as a strong support.
I would suggest not to get obsessed with market rise this time, till the picture gets clear (because there will be a big event of poll results in mid of May). It seems that wind can change for time. Stay cautious (particularly of buyers).
Stocks to Watch (technical call).
Axis Bank gave a beautiful upside rally from 1084 to 1568 in last 3 months. But now it’s trying to form a range in between 1500 to 1570 from last 8 days losing its streak for upside for some time now. Though Axis bank reported better results on 25/April/2014(4 quarter results) with net profit raise by 18.5 percent to 1842cr on higher other income and net interest income. Its board of directors have declared a dividend of Rs.20 per share and also approved stock split from Rs.10 to Rs.2 which means subdivision of one equity share having face value of Rs. 10 each into five equity shares of face value Rs.2.
But technically, cautiousness must be kept in mind for this stock. One can initiate sell call on rise in this stock and hold it for 15 days. Sell Axis Bank fut on rise for the target of 1400 and keep stop loss of 1580, last closed at 1536 as on 7/May/2014.
Bank of Baroda also gave fantabulous upside rally from 512 to 837 in last 3 months. Trying to form a range in last 8 days, it closed at 807.75 as on 7/May/2014. The fourth quarter results of Bank of Baroda will be out on 13/May/2014, where the board will recommend final dividend as well. But technically it seems that this will give fall upto 750.
Sell Bank of Baroda fut on rise for the target of 750 and stop loss of 840.