Axis Bank shares slip into red after hitting 52-week high; here's what analysts say

Shares of Axis Bank slipped into the red in Wednesday's trade after hitting fresh 52-week high, tracking an overall weakness in banking stocks. The scrip gained 0.93 per cent to hit a day high -- also its 52-week high -- of Rs 958.90 over its previous close of Rs 950.05. However, it fell 2.36 per cent to hit a day low of Rs 927.60.

A total of 1.91 lakh shares changed hands on BSE, amounting to a turnover of Rs 18.06 crore. The lender's market capitalisation or m-cap stood at Rs 2,87,685.75 crore.

At today's low level of Rs 927.60, the private lender has gained 50.07 per cent compared to its one-year low of Rs 618.10, hit in June this year.

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The stock has lost 0.61 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has moved 34.42 per cent higher.

Analysts largely remained 'positive' on the counter suggesting support around Rs 910-920 zone. One analyst felt that the stock could hit Rs 1,000 levels 'soon' while the other analyst found it 'overbought'.

Osho Krishan, Senior Analyst - Technical & Derivative Research, Angel One, said, "Axis Bank is in a secular uptrend, hovering at its lifetime high zone. Technically, the counter is in the cycle of higher highs – higher lows and is firmly placed above all its major exponential moving averages on all time frames, construing a positive setup. As far as levels are concerned, immediate support is placed around the Rs 910-920 zone, followed by the sacrosanct support of 900-890 levels. Looking at the overall technical structure, the stock looks well verse to march in the uncharted territory from a short to medium-term perspective."

Ravi Singhal, CEO, GCL, said, "Following a period of strong consolidation between Rs 700 and Rs 800. The stock has broken out above Rs 820 and is now trading near Rs 950. We believe it will soon display Rs 1,000 levels. Keep a stop loss of Rs 925."

A R Ramachandran from Tips2trades, said, "An excellent uptrend in Nifty Bank due to rising interest rates and an improving credit cycle has led to a strong rally in banks where Axis Bank has currently assumed the leadership position. On the daily charts, the stock looks overbought. Rs 967 is strong resistance and investors should book profits at current levels up to Rs 967 and wait for a dip near Rs 842-850 to initiate fresh buy positions."

Manoj Kumar Dalmia, Founder and Director, Proficient Equities, said, "The lender hit a fresh lifetime high after a few analysts said its valuations are likely to converge with those of ICICI Bank. Axis Bank has strengthened both its asset and liability businesses over the past few years to deliver sustained improved performance."

Axis Bank reported a consolidated net profit of Rs 5,330 crore, up 70 per cent for the quarter ended September 2022 (Q2), as against Rs 3,133 crore in the year-ago period. The lender's net interest income (NII) grew 31 per cent yearly.

Further, the bank has allotted 3,59,258 equity shares of Rs 2 each on December 20, 2022, under its ESOP scheme, Axis said in an exchange filing.

"The paid-up share capital of the bank has accordingly increased from Rs 614,89,05,132 (307,44,52,566 equity shares of Rs 2 each) to Rs 614,96,23,648 (307,48,11,824 equity shares of Rs 2 each," it added.

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Meanwhile, Indian equity benchmarks traded lower today, dragged by banking, financial, automobile, consumer and metal stocks.