Throughout May, the stock has been closing below its resistance level.
“AXISBANK is showing promising technical indicators, with a bullish candle formation on its daily chart near the 20-Day EMA levels. The stock has formed a bullish flag and pole pattern on daily charts, indicating strength. There is a minor resistance at 1150 levels, with a potential target of 1225,” said analyst Deven Mehata from Choice Broking.
(Source: Choice Broking)
Highest outstanding OI for the series
Highest Call OI
The highest call OI for Axis Bank is at the strike price of Rs 1,150 (2,513) with a -140 change in OI, followed by Rs 1,180 (2,019).
Highest Put OI
The highest put OI for Axis Bank is at the strike price of Rs 1,100 (2,239), followed by Rs 1,050 (1,689).
The stock remains above key moving averages, with an RSI of 58.24 indicating positive momentum. Investors are advised to consider positions in AXISBANK using option strategies to benefit from potential upside movements,” Mehata added.
Based on the analysis, Mehata suggests a Bull Call Spread strategy to capture bullish momentum.
Bull Call Spread
The Bull Call Spread strategy is best for a less aggressive stock outlook. It involves two-leg spread strategy with an ATM and an OTM option, resulting in a ‘net debit’ for the trader.
(Prices as of 15th May)
Below is the payoff chart for the strategy:
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
