Axis Bank Bounces Back After 7-Month Slump – More Gains Ahead?

 

After a prolonged seven-month decline, Axis Bank shares have rebounded by 8% from their late January lows, now holding above the 8-day exponential moving average (EMA). Analysts believe the recovery could trigger further short covering in the coming days.

 

Key Insights:

 

✔ Stock Performance: Axis Bank fell from its ₹1,340 peak in July 2024 to a low of ₹933 in January 2025 before showing signs of a turnaround.

 

✔ Historical Trends: Over the past 10 years, Axis Bank has delivered positive returns in the second quarter on eight occasions, averaging a 6% gain.

 

✔ Mutual Fund Positioning: Funds remain underweight on Axis Bank compared to NSE200 weights, leaving room for potential accumulation.

 

✔ Technical Analysis: The stock has been trading within an upward sloping channel since the post-COVID decline, recently bouncing off the lower end, indicating strong upside potential.

 

✔ Volume & Open Interest: The recent surge in Axis Bank shares has been backed by higher-than-average traded and delivery volumes. With futures open interest still elevated, analysts anticipate further short covering in the coming sessions.