Tuesday, June 01, 2010

AXIS BANK breaks the up trend

AXIS BANK (CMP Rs 1205) has broken the up trendline support which it had been maintaining well in whole rally. Now there are rumours of KARNATAKA BANK being merged with AXIS BANK but whether really synergies are present after the merger is anybody's guess. We have seen ICICI BANK cracking after unfavourable ratio of merger with BANK OF RAJASTHAN and I feel small private banks merging with larger ones would be negative in short-term.
AXIS BANK shows next major support at Rs 1048 which is its 200DEMA and looking at formation levels below Rs 1000 look possible. Investors may take profits in this stock while traders may have Rs 1240 as stop loss for the down move.

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