HDFC Bank & Axis Bank: Price Action Analysis and Trading Strategies

Greetings, fellow market enthusiasts!

As always, it was another smashing week for those who tuned into my pre-market YouTube videos. This is as the daily index analysis provided was beneficial for both option buyers and sellers. For those who missed it—well, what can I say? You’re missing out on some great analysis and trading plans!

Now before we go into today’s article, on Saturday I uploaded an educational video to the YouTube channel. In it, I dissected a trade in which I captured the large price spike that occurred on Thursday of last week. This is as after I posted the trade there were many queries on how to catch such spikes. So as to share the knowledge, I have made a video illustrating how I utilise price action analysis and volume analysis to let me preempt price spikes. Thus, if you are serious about upping your trading skills, that video is a must-watch. I have provided its link at the end of the article.

Now, let’s get down to today’s business! In this article, we will cover three stocks and one index. The article will cover Axis Bank (NS:AXBK). While the YouTube video shared below analyses HDFC Bank (NS:HDBK), Sun TV (NS:SUTV), and Nifty Midcap. I covered these stocks via a video as their charts are more complicated. Hence, this way I can explain their details more intricately. While, I looked at the Midcap Nifty because of its expiry today.

Axis Bank: Will It Rally?

Today I am perusing through Axis Bank, as I had also covered it in my channel recently. I had predicted that the equity would rise to the crucial resistance levels between 1,200 and 1,210. And guess what? I absolutely nailed it, as on Thursday the stock reached my resistance zone. After which, on Friday it slightly surpassed the zone by reaching 1,217. So, what’s next for Axis Bank?

Now, since it has cleared a major hurdle, I expect the equity to consolidate for a day or two before it moves towards my second target of 1,245. If it breaks that, then it has the potential to reach 1,285.

How am I trading it on the equity front? On the equity front, as it met the criteria discussed in the earlier video, I have already entered a long position. Thus, I now plan to continue holding the stock with a profit stop. This is as my aim is to secure the gains made thus far whilst also holding the stock to the resistance level shared above.

How am I trading it on the derivatives front? On the derivatives side, I currently hold PE sells of 1,200 and below with a profit stop. However, if we break and sustain above Friday’s high in the 3-hour chart, then I will add fresh PE sells of 1,220 and below. But for this, I will keep a tight stop loss as it is a new position and hence hasn’t made me any money yet. Plus is a riskier trade as I will be selling puts that are In-The-Money.

The Final Verdict:

Overall, Axis Bank has already delivered a quick profit for me and the video viewers. I plan to stay in both the equity and derivative positions, adjusting with profit stops as needed. However, if the stock breaks above 1,220, then I am ready to enter fresh PE sell positions.

Finally, do check out the YouTube video, as it holds the key to unlocking the trading potential of HDFC Bank and Sun TV. Both of these stocks present fantastic opportunities for those looking to make some quick gains. Also, for those trading the Nifty Midcap expiry, the video will equip you with relevant knowledge to navigate it like a pro.

Until next time, happy trading!

NB: The link to the educational video discussed above is: https://youtu.be/vk0vrZz9XIM