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Business News/ Markets / Stock Markets/  Axis Bank is Religare's pick of the month for March, 10% upside seen at TP of 1,185; should you buy?
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Axis Bank is Religare's pick of the month for March, 10% upside seen at TP of ₹1,185; should you buy?

Domestic brokerage firm Religare Broking has picked Axis Bank as its stock pick of the month for March and the potential upside is seen around 10 per cent.

Axis Bank branch photographed in Mumbai. Photograph: ABHIJIT BHATLEKAR/MINTPremium
Axis Bank branch photographed in Mumbai. Photograph: ABHIJIT BHATLEKAR/MINT

Domestic brokerage firm Religare Broking has picked Axis Bank as its stock pick of the month for March 2024 with a potential upside seen around 10 per cent. Shares of Axis Bank were on an uptrend and gained around three per cent today as Nifty 50 hit a fresh lifetime high of 22,353.30 on strong macroeconomic indicators.

On Friday, March 1, shares of Axis Bank opened at 1,074.05 and gained 2.5 per cent to hit an intra day high of 1,101.60 against its 52-week high of 1,151.50 apiece on the BSE. Shares of Axis Bank settled 2.20 per cent higher at 1,099.35 apiece on the BSE.

Also Read: FD rate hike: Axis Bank increases interest rates on fixed deposits. Details here

Technical View:

At a current market price (CMP) of 1,085, Religare sees a potential upside of 10 per cent on Axis Bank stock at a target price of 1,185 from an initiation range of 1,080-1,085 and a stop loss of 1,030.

Religare Broking highlights that in its report that Axis Bank has remained one among the top performer among the private banking majors and we expect the outperformance to continue.

‘’The stock has been in a primary uptrend from last more than eight months, forming series of Higher Highs and lows with gradual rise in volumes. It has formed an elevated base around the 20 weekly EMA which also coincides with rising support trend line,'' said Religare Broking. 

Following the price action and uptick in volumes indicates the stock to resume its prevailing trend and inch higher to surpass its previous swing high, according to the brokerage.

Rationale:

The stock gained marginally (around three per cent) in the previous series with reduction of eight per cent open interest (OI). 98 per cent of the open positions rolled which is same with respect to previously. ‘’OI of 82k contracts as against 89k previously. Decent cash based buying also seen in last three days of February series. With fresh cash accumulation and shorts being trapped, it may witness good short covering,'' said Religare Broking.

Axis Bank Q3 Results:

The private lender posted a net profit of 6,071 crore in the October-December quarter of the fiscal year 2023-24, reflecting a four per cent increase from 5,853 crore recorded in the corresponding period last year.

The bank's net interest income (NII) in the third quarter at 12,532, crore, which rose by nine per cent - almost in line with the market estimate of 12,555 crore. NII is the difference between interest earned by a bank through loans and interest it pays to depositors.

Meanwhile, the net interest margin (NIM) stood at 4.01 percent for the quarter ended on December 31, 2023. Net Interest Margin refers to the difference between the interest income earned and the interest disbursed by a bank in relation to its interest-generating assets such as cash.

 

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

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 01 Mar 2024, 05:59 PM IST
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