INSUBCONTINENT EXCLUSIVE:
Mumbai: Axis Bank could potentially rise 5 per cent or more to Rs 600 after the private lender reported substantially lower slippages and
provisioning in Q1 on Monday
At Rs 569 Monday, the stock already trades at the upper end of the Rs 500-600 trading range for the August series
and short covering by call sellers could help propel the stock towards the Rs 600 mark.
Heavy call selling was seen pre-result across
On opening Tuesday, traders are likely to cover their shorts at the 560 call initially
The price per share (1,200 shares equal one lot) of the 560 call was Rs 28
Assuming seller breakeven of 50 per cent at the beginning of the derivatives series, Axis could witness potential gap-up opening of
three-odd percent to Rs 588-590.
Immediate supports are at Rs 550-560 levels
The momentum could even take the stock above Rs 600 given the trend of investors and traders alike rewarding the banks on the belief of the
it has weightage of 8.37 per cent and on the Nifty to a lesser extent where it has 1.79 per cent weight.
The put-call ratio of the near
month could increase from 0.88 as more traders begin to write puts on the lender post its quarterly results.
