Axis Bank shares climb to life-time high. Is more steam left?

Market


Stock market today: Continuing its bull trend, Axis Bank share price today ascended to a fresh high of 970 apiece on NSE. Axis Bank shares today opened downside but soon attracted buying interest and went on to hit intraday high of 970 on NSE, logging near 1 per cent appreciation from its Tuesday close of 962.30 on NSE. 

According to stock market experts, Axis Bank is in uptrend due to large corporates coming back to Indian systems for credit line. They said that Axis Bank’s focus on tech enabled online lending is also favouring bull run in the banking stock. 

Market experts said that both Axis Bank and ICICI Bank has special focus on tech enabled lending business but in terms of valuations, Axis Bank shares are more attractive. Hence, Dalal Street bulls are looking at Axis Bank for more higher returns in short to medium term time horizon.

Speaking on the reasons for continuous rally in Axis Bank shares, Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal said, “Two private banks have special focus on tech enabled lending business — ICICI Bank and Axis Bank. But, in comparison to their valuations, Axis Bank shares are more attractive and hence bulls with short to medium term outlook at favouring Axis Bank shares ahead of ICICI Bank shares. And this is the major reason for Axis Bank stocks hitting life-time high on a regular basis.”

Saurabh Jain, Vice President — Research at SMC Global Securities said, “One of the major triggers for Indian banking segment is large corporates coming back to Indian banking system for credit line. This has happened because of the overseas lending becoming dearer after ease in dollar index. So, large corporates are coming back to Indian bank to Indian banks for credit line and this is going to improve margins of Indian banks as well. As Axis Bank has exposure in corporate lending as well, so this is going to work in favour of the private lender in near to medium term. So, market is expecting Axis Bank share price rally to further continue.”

Axis Bank share price target

On suggestion to positional investors in regard to Axis Bank shares, Chandan Taparia of Motilal Oswal said, “Axis Bank shares may go up to 1,050 apiece levels in short term and positional investors are advised to buy the stock on every dip maintaining stop loss at 930 apiece levels.”

In last six months, Axis Bank share price has ascended to the tune of 45 per cent whereas in last one month, it has risen from around 900 to 970 apiece levels, logging around 8 per cent rise in this time horizon.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.


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