Axis Bank zooms on trimming of CEO tenure, stock breaches major resistance

Country’s third largest private sector bank, Axis Bank surged 5 per cent plus from its previous close. The bank which forms 7.5 per cent of the Bank Nifty index and 10 per cent of the Nifty Private Bank index drove the sectors upwards to trade and close in green with 0.5 and 0.8 per cent gains, respectively. Thereby, Axis Bank along with ICICI Bank and metal frontliners kept the markets going in an otherwise lacklustre trading day.

Axis Bank's Board cut CEO, Shikha Sharma’s tenure as she herself decided to step-down amid deteriorating financial of the bank during her tenure. Her tenure has been reduced to 7 months from three years of reappointment. She had requested the Board to reconsider her period of re-appointment from June 1, 2018 to December 31, 2018, which was agreed upon by the Board.

Considering the weekly time frame, the stock of Axis Bank is off its upward sloping trendline support level and is heading northwards. It has formed a Symmetric triangle pattern which has its trendline resistance at 620 levels. The bounce is duly supported by huge volumes and 14-period RSI positive crossover. Even on daily time frame, the stock had been trading with steep lower tops and lower bottoms since the top near 627. Currently, the stock has surpassed its major resistance at 538-539 levels. Going forward, we can expect some more upside, at least up to the upper point of the triangle.