How to trade in Axis Bank ahead of its Q1 results?

According to experts, Axis Bank could post robust growth in net interest income (NII) and profit in the first quarter, helped by healthy growth in its loan book. Its NII is expected to be in the range of ₹13,300 crore to ₹13,400 crore, up between 12% to 14% YoY. Meanwhile, net profit could be in the range of ₹6,500 crore to ₹6,700 crore, up 12% to 15% YoY.

Additionally, Axis Bank's loans are expected to grow between 13%-14% year-on-year during the quarter. Meanwhile, its deposits are expected to grow in the range of 12%-13% YoY, while gross non-performing assets (NPAs) are likely to decline.

During the earnings call, investors and traders will be watching Axis Bank's net interest margin (NIM), asset quality for the rest of the fiscal year and management's comments on the outlook for loan growth.

Ahead of the Q1 results, Axis Bank shares are trading 0.77% lower at ₹1,253 and have gained over 13% this year.

Technical View

Axis Bank is currently trading within an ascending channel on both daily and weekly charts. This pattern signifies an upward trend, with two upward sloping trend lines denoting resistance and support levels. Traders use these trendlines to place stop-loss orders and profit targets. A break above the channel indicates a possible continuation of the upward trend, while a break below the channel signals a possible trend reversal. Until the range is broken, the stock may remain within this range.

Meanwhile, on the daily chart, the stock has made four attempts to break above the upper trendline, all of which have failed. Furthermore, the stock has been trading between 1,310 and 1,239 zone for the past month. Traders can monitor the breach of this range and the channel pattern for directional strategies.

Options overview

Options strategy for Axis Bank

Based on options data suggesting a potential price movement of ±3%, traders have the opportunity to engage in either a long or short volatility strategy.

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for educational purposes. We do not recommend any particular stock, securities and strategies for trading. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing.