Buy Axis Bank; target of Rs 1120: Nirmal Bang

“Axis Bank formed a high in Febuary’12 and later declined sharply after the breakdown from descending triangle pattern and bottomed out in May’12 after positive divergence in RSI and bullish crossover in MACD.  The counter since May’12 has advanced in a rising channel pattern which is obtained by connecting lows and the highs which is a bullish Dow signal indicating a start of a higher high and low formations. The MACD has given a bullish crossover and has entered into the bullish territory. The RSI indicator is currently rising and has exceeded its resistance of April’12 & June’12 highs indicating bullish momentum in the stock.  The prices in short term are likely to test the falling trend line drawn from the Febuary’12 highs which coincides with the short term rising channel drawn from the May’12 low which is around the `1110-`1130 levels.”

“The stock has managed to give a decisive close above the long term 200sma which historically acted as a good support & resistance which is a strong bullish signal.  There was an emergence of Bullish Engulfing pattern in weekly chart which has been successfully defended which further validates the rising support line,” says Nirmal Bang research report. 

Public holding more than 90% in Indian cos

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