Axis Bank retraced quite a lot post budget rally (on the back of removal of distinction between FII & FDI limits, specially in private banks). Axis Bank has also some better ratio in terms of asset quality (NPA) in comparison to its peer. Its also planning to enter into offshore investment banking to tap corporate bond issuance markets as Indian corporates are increasingly tapping overseas cheap market for the same. Going forward, expected thrust in Indian economy as a result of "Modinomics" may help immensely the banking sector. Also, RBI may tweak SLR/CRR rate in the forthcoming policy date on the 1-st week of April (Repo rate may be gradually cut by another 50-75 basis point by next twelve months as immediate hawkish stance of Fed recedes ).
Looking at the chart, technically Axis Bank (CMP:563) has immediate support of 558 & below that 546-540 is a good positional support zone. At least two consecutive closing below 540, it could fall to 525-520 & 460 zone (low probability as of now).
On the up side, sustain above 558, immediate target will be 585-600 zone. Consecutive closing above 600, short term target may be around 625-655 and mid/long term target should be 675-705 and 725-750.
Talk of definitive Greece agreement by next few days and reform bill pass by our RS may help the market.
As par BG model of techno/funda valuation, median value of Axis Bank is around 605 (stand alone data) under the current market conditions.
| SCRIP | EPS(TTM) | BV(Act) | P/E(INDS) | LONG TERM | SHORT TERM | MEDIAN VALUE | 200-DEMA | 10-DEMA |
| AXISBANK | 29.63 | 161.42 | 23.88 | 574.12 | 636.38 | 605.25 | 465.85 | 572.35 |
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