Application of Elliott wave, basic technical tools along with ratio chart to predict the trend of Axis Bank!

Axis Bank has been moving in its own fashion irrespective of the outperformance witnessed in peer stocks like Indusind Bank, Yes Bank and HDFC Bank. All these stocks are trading at the new highs but particularly Axis Bank has been underperforming the overall market. We can understand the same if this underperformance is going to end or not through ratio chart. In today’s “The Financial Waves Short Term Update” we have shown ratio of Nifty/ Axis Bank which is providing important information. Along with the same application of Elliott wave can guide us for the pattern under formation.

Axis Bank weekly chart:

Stocks: Nifty/ Axis Bank Ratio: Understanding the underperformance and Elliott wave pattern!

Axis Bank 60 mins chart:

Nifty/ Axis Bank Ratio: Understanding the underperformance and Elliott wave pattern!

Wave analysis:

“As shown weekly chart, we can see that since the start of 2015 this stock has been moving in a contracting pattern. As per wave perspective, intermediate wave II is ongoing in form of complex correction pattern. From the start of 2017 minor wave x on upside is running its course which is trading in sideways to positive action.

We have shown Axis Bank/Nifty ratio which clearly shows the underperformance of Axis Bank against the Nifty. However now this ratio has arrived at the support from where reversal was witnessed earlier. Hence price behavior from ….

As shown in 60 mins chart, recent sharp rise has retraced the last leg of down move in faster time which indicates that minute wave (y) has started. 505 is going to act as important support.

In short, Axis bank short term trend is positive as long as 505 is intact on downside. Post some consolidation prices can move …….”

You can get access to “The Financial Waves Short Term Update” which covers Nifty and 3 stocks where short term trading opportunity exist. This research is based on Elliott wave and important levels which can help for short to medium term trading.