Technical request: What are the technical perspectives for Axis Bank shares?
I want to invest in Axis Bank shares for the long term. Please let me know the technical outlook for this stock.
GB Rajeswar Reddy
Axis Bank (687.65): The action is hovering above a key support level of 655. Brackets are also available at 625 and 590. As such, we can consider ₹ 655- ₹ 590 as a broad area of support for the stock. You can consider buying the stock at different levels as follows. Buy 25 percent of the total amount planned at 660. Then, accumulate an additional 35% to 630. The 40 percent balance can be bought at ₹ 605. A further rally in the ₹ 655- ₹ 590 area could potentially target ₹ 1,050 in the long term. The title will only be threatened with a steeper fall if it decisively drops below 590. Such a breakout will increase the risk that the stock will tumble towards 500- ₹ 450 or even lower. So, you will need to have a stop-loss at ₹ 520 and exit with a loss. If this happens, you can wait a while to enter the stock at better and lower levels.
I hold the shares of Karnataka Bank purchased at an average price of 120. Should I hold the stock or take a loss or buy more to average the price?
Bank of Karnataka (₹ 68.35): The title struggles to gain momentum and recover. The stock has room to test ₹ 55 from here in the short term.
Moreover, a sharp rise beyond ₹ 82 is necessarily necessary for the stock to return to the bullish zone. But it looks very difficult on the charts and could take a long time. You could very well get out of this stock and lose your books. You may want to consider investing the proceeds from the sale of these shares in Axis Bank, as discussed in the previous question above.
Please give me the long term outlook for JSW Steel stock. I bought this share at 690.
JSW Steel (₹ 679.3): The strong uptrend that had been in place since April 2020 stopped around 780 yen in May of this year. Since then, the stock had consolidated below 780 and started declining from August of this year. It is now in a corrective phase of the larger uptrend. The main supports are at 590, then at 520. The chances that the fall will extend to ₹ 520 in the coming months cannot be excluded. However, the general trend will continue to remain upward. So you can buy more and accumulate to 595 and then to 530. Hold a stop-loss at 390 and hold the action for a long-term target of 950-970.
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