AXISBANK & ICICIBANK - weekend analysis

1. AXISBANK

Results announced -

Net interest income grew by 42.5% YoY during 1HFY11 on the back of 37% YoY growth in advances & Net profits grew by 35% YoY 

What happens after good results are announced? Markets starts thinking if this  kind of YoY growth is sustainable & stock falls 6% in 2 days on profit booking!

Weekly Chart:

There are several supports along the way @1520-1505-1496-1482. If all of them are breached it would head to 1474-1454-1426

Monthly Chart:

If this turns out to be a pretty strong correction, AXIS can head to 1422.

How to trade AXISBANK next week?
Positional trade: As of now it looks like a 'sell on rise' stock. But entry point needs to be close to previous week's VAL @1553 with stop loss @ previous week's VWAP @1566 - if crossed S&R above 1577
Intraday trade: If 1496-1505 is held try aggressive long with a SL@1496 targeting 1545-1555

2. ICICIBANK
Weekly chart:

Currently below weekly VAL of 1130. It has strong support @1120 from where it made a sharp rise on expiry day. If 1120 is broken then it can head all the way to 1100 or 1090.
On the positive side if it manages to cross weekly VAL of 1130, a long can be attempted for a target of weekly VAH of 1148 (80% rule)

Monthly chart:

From monthly chart we can see that ICICIBANK fall should halt in the worst case @1090-1100 and if that is breached it can head towards 1048 for a gap filling move.

How to trade ICICIBANK next week?
If 1130 is crossed and held one can try aggressive long with a SL@1120 targeting 1139-1148 (80% rule)

If this turns out to be a deeper correction then positional shorts can be taken with SL @1140-1145.

Its a tricky market to trade because we seem to be range bound and not breaking on either side. So positional calls are tough to take. Only being nimble footed and 'long once important resistances are crossed' or 'short when important supports are broken' & taking quick profits -- seems to be the way to go.