Shares of Axis Bank and Paytm tumbled over 8 per cent in Monday’s intra-day trade despite steady gains in the benchmark indices. The BSE Sensex and NSE Nifty rose up to 0.9 per cent in today’s trading session.
Meanwhile on the NSE, Axis Bank shed 4.8 per cent to a day’s low of ₹1,300 after the bank reported in-line Q4 numbers. Axis Bank’s Q4 net dipped 0.6 per cent year-on-year (YoY) to ₹7,071 crore, while net interest income (NII) rose 4.7 per cent YoY to ₹14,457 crore. The bank reported a solid 18.5 per cent growth in its loan book.
Most brokerages have raised their target prices on the Axis Bank stock along with a moderate increase in earnings estimates post Q4 results.
READ MORE Meanwhile,
Paytm’s share price cracked 8.4 per cent to a low of ₹1,051 after the
Reserve Bank of India (RBI) cancelled the banking licence of Paytm Payments Bank Limited (PPBL).
Over the weekend, the RBI in a statement said that the licence was cancelled because the “affairs of the bank were conducted in a manner detrimental to the interest of the bank and its depositors”.
Following the RBI’s action, One97 Communications, Paytm’s parent company, said its board and shareholders approved the necessary resolutions to enable the winding-up of PPBL.
Amid today’s trading action, both Axis Bank and Paytm opened with a negative gap on the charts. Analysts believe this is likely to weigh on the sentiment at these 2 counters.
Here’s a detailed technical outlook on Axis Bank and Paytm by Osho Krishan, Sr. Analyst – Technical and Derivatives Research at Angel One.
Axis Bank
Current Market Price: ₹1,315
Osho Krishan highlights that the bearish gap between ₹1,325 and ₹1,350 could cap upside momentum for the Axis Bank in the near term. The analyst, however, adds that a bullish gap in the ₹1,300 – ₹1,255 range is expected to provide support and cushion near-term downside, suggesting that minor retracements post-recovery may not warrant a cautious stance. Technically, ₹1,255 remains a key support level. Furthermore, the stock continues to trade above its 50- and 100-day EMAs, indicating an underlying positive trend, says Krishan. ALSO READ | How to trade RIL stock post Q4 results; Analyst flags key levels to track
Paytm
Current Market Price: ₹1,117
Paytm stock dipped below its key exponential moving averages amid today’s early sell-off, notes the analyst from Angel One. Technically, Krishan believes that the zone of ₹1,100 – ₹1,140, marked by a bearish gap, is likely to serve as a significant resistance for Paytm, followed by the 200-day moving average near ₹1,180. “Until these levels are decisively surpassed, the outlook is likely to remain cautious. On the downside, the ₹1,035 is expected to act as a support zone, potentially providing near-term stability,” explains Krishan. Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.
