Discover the secrets of
predicting stock moves with a powerful blend of fundamental analysis and
Elliott Wave Theory-based technical insights!
A
Leader with Strong Fundamentals
Axis
Bank, a prominent player in India’s private banking sector, exemplifies robust
financial health and growth potential. In FY24, the bank's equity capital rose
to ₹617 crore, and reserves increased to ₹1,56,406 crore, underscoring its
strong balance sheet. Investments climbed to ₹3,32,354 crore, reflecting
strategic expansion efforts.
Profitability
remains a standout feature, with a remarkable 54.2% profit growth over three
years and a return on equity (ROE) of 18.4%. While a 1-year return of -1.4%
highlights short-term challenges, a 5-year return of 7.25% showcases the bank's
long-term resilience. Axis Bank’s ongoing focus on digital transformation and
sustainability enhances its growth trajectory, along with innovations in retail
and corporate banking.
In Q2
FY25, the bank achieved a notable net profit of ₹6,918 crore and welcomed a new
chairman, (former RBI Deputy Governor, N.S. Vishwanathan, has been appointed as
the Non-Executive (Part-time) Chairman of Axis Bank), emphasizing its
leadership stability. Despite a high debt-to-equity ratio of 8.25 and market
fluctuations, improved asset quality and provisioning efforts mitigate
associated risks.
Axis Bank has partnered with “Cleartrip” to offer industry-first
benefits to its 12.5 million users, enhancing customer value through exclusive
travel-related offers.
The bank announced a strategic partnership under the co-lending model,
aiming to expand its reach in the affordable housing segment.
These developments highlight Axis Bank's commitment to innovation,
strategic growth, and strengthening its market position in the Indian banking
sector.
The Elliott Wave Analysis
Axis
Bank's monthly chart follows a classic Elliott Wave pattern over a long period.
The stock has shown strong upward trends, with corrections aligning well with
Fibonacci levels.
After
a major upward movement, the stock seems to be in a corrective phase. However,
with changing market conditions, the recent decline suggests investors should
be cautious.
The monthly
chart of Axis Bank demonstrates a textbook Elliott Wave progression. Wave 1 (in
red) marked a strong initial impulse, followed by Wave 2 (in red), a corrective
phase adhering to Fibonacci retracement norms.
Waves
i, ii, iii, and iv (in black) within Wave 3 (in red) illustrate a powerful
extended impulse, confirming bullish sentiment. Currently, Wave iv (in black) correction
is underway, paving the way for a potential final Wave v (in black), targeting
new highs. This pattern highlights long-term bullish prospects while signalling
caution during corrective phases.
The daily chart of Axis Bank illustrates a classic Elliott Wave
corrective structure, marked as A-B-C in red. Wave A initiated the decline,
followed by a corrective Wave B, and now the final Wave C is in progress. Based
on wave projections, the price is expected to dip further, likely targeting the
1000–1020 INR zone, aligning with typical Fibonacci retracement levels and
prior support zones. This move marks the completion of Wave IV, paving the way
for a potential bullish reversal in Wave V.
The chart of Axis Bank demonstrates a well-defined Elliott Wave
structure within a rising channel. Wave IV is currently unfolding as a
corrective phase, with Wave C (in red) projected to conclude near the green
support zone around 998 INR, aligning with key Fibonacci retracement levels.
A potential reversal is anticipated from this level, leading to the
initiation of Wave V (marked in black), targeting the upper boundary of the
channel. Traders may consider this level as a critical point for potential
accumulation but are advised to use proper risk management and wait for
confirmation of a trend reversal before taking any action.
Disclaimer:
I am not a SEBI-registered financial advisor. The analysis and views
shared here are purely for educational and informational purposes and should
not be considered as financial advice or investment recommendations. Trading
and investing in the stock market carry a high level of risk, and past
performance is not indicative of future results. Readers are strongly
encouraged to consult with a certified financial advisor or SEBI-registered
professional before making any financial decisions. I am not responsible for
any losses incurred based on the information provided.