Looks like with today`s rally Axis is goint to see greater heights in tomorrow`s session. What is the upper level? i do not know the answer. safely we can assume this will be around 1050 level by 13th. Fundamentaly this is a sound script. Technically a good buy at 1K level with SL at 980 and target rate of 1030 by Friday. My instinct say it will be above Rs. 1030 in tomorrow`s session. What say?
True. In markets of this volatility, short term predictions (of less than one month) are difficult.
But, most people - me included - are convinced that Axis Bank is a strong Bank, on an excellent growth Path.Its fundamentals are excellent. I personally feel it will equal or overtake HDFC bank in 2-3 Qtrs.
Having tracked its qtrly rersults, I find that its last 6 Q`ly results are well comparable with HDFC Bank on most of the critical parameters.
It is an excellent BUY for medium term investors.
But, if it catches analysts` and market`s fancy (as it should)- it might surprise investors pleasantly.
Price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to...the operating results of his companies." - Ben Graham
AXIS BANK earned very cheap equity funds through QIP etc at fag end of Sep`09, which appeared to slightly depress its results for q/e Sep`09.
But, if this addl equity got at Sep end is factored in, the results were definitely good.
For Banks, these funds serve as IMMEDIATELY LOANABLE FUNDS on which revenue starts flowing very quickly.
Investors will start calculating the progress made by AXIS BANK when the next earnings season starts - at Dec end.Till then, there will be a calculation Fatigue.
Whoever accumulates now, will probably reap a rich bonanza in Axis Bank.I expect the Dec end result to show much higher EPS and March end EPS to be the HIGHEST in the history of Axis bank(till then).
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