Axis Bank Share Price Analysis: Buy AXISBANK on Dips and Sell Rallies

Axis Bank share continues to give weekly gain from last six weeks. The share price in six weeks has moved up from the level of Rs. 500 to a level of Rs. 620. The stock still shows strength to move up backed by fundamentals.

Axis Bank Share Price Chart NSE: AXISBANK

Above weekly chart shows the strong movement on the stock from last 6 weeks. The stock has broken the minor resistance at the level of Rs.545, and the next resistance is at the level of Rs.623. The long-term target on the stock is around Rs. 800

Investment Rationale

• Axis Bank is expected to add between 350 to 400 branches to its network in FY 19 from the current about 3,800 branches. The company had added 400 branches in FY 18 and in the first quarter of 2019, the bank has added 76 branches.
• The mobile banking segment of Axis Bank is growing strongly as shown by its numbers. In the first quarter of 2019, the bank’s mobile banking spends at the bank grew 90% to Rest. 71,444 crore year on year. Axis Bank is taking several initiatives to promote ‘Digital India’ agenda, both in rural and urban areas. As a result, there is good growth in the transactions done digitally. There was more than 70% of all transactions were made through digital mode in the first quarter 2019.
• Axis Bank has introduced Iris Scan Authentication feature for Aadhaar-based transactions through its micro ATM tablets, which is first of this kind among the banks. The Bank is exploring this feature for varied other services like loan processing, insurance, key account opening and others the bank Axis Bank is presently running a pilot program at eight of its branches in rural segment and would most likely to extend it to the semi-urban and urban regions as well.

Due to various frauds related with banks had put the Axis bank stock in pressure, but now the stock has recovered and showing great momentum, backed by financials and other fundamentals. For the period of for Apr-Jun 2018, Axis Bank has delivered the net profit of Rs. 701 crore  recovering from its first-ever net loss of Rs. 2,188.74 crore in Jan-Mar 2018 and also with improved asset quality.

The Indian economy is also doing well with the general elections stated to take place next year. The investors should “hold” the stock and should “buy on dips” with the target of Rs.800 for a time frame of one year.