Axis Bank Share Price Falls After Q1 Results: Will It Bounce Back or Slide Further?
Shares of Axis Bank took a steep hit after the bank reported weaker-than-expected financial results for the first quarter of FY26. The Axis Bank share price cracked over 6% on the NSE, dropping to an intra-day low of ₹1,086. This decline dragged the stock below its critical 200-Day Moving Average (DMA)—a bearish technical signal that has investors and analysts on edge.
🔍 What Triggered the Fall in Axis Bank Share Price?
Axis Bank reported a 4% year-on-year (YoY) drop in net profit to ₹5,806 crore for Q1FY26, compared to ₹6,034 crore in Q1FY25. The disappointing earnings were attributed to a one-time spike in provisions and "technical slippages".
- Total Slippages: ₹8,200 crore, with ₹2,709 crore due to "technical impact"
- Loan Loss Provisions: Soared by 187% YoY to ₹3,948 crore
- Net Interest Income (NII): ₹13,560 crore, just 0.8% higher YoY
- Net Interest Margin (NIM): Fell to 3.80% vs 4.05% a year ago
- Gross NPA Ratio: Jumped to 1.57% from 1.28%
- Net NPA Ratio: Rose to 0.45% from 0.33%
This earnings disappointment led brokerages to either downgrade the stock or cut future earnings estimates.
📉 Technical Analysis: Is There More Downside for Axis Bank?
The stock has broken below its 200-DMA of ₹1,120, and it's now approaching its key weekly trendline support of ₹1,077. A sustained breakdown below this level could push the stock towards its 200-Week Moving Average (200-WMA) of ₹959, indicating a downside risk of over 13%.
Important Technical Levels to Watch:
- Current Price: ₹1,107
- Support: ₹1,077, ₹1,020
- Resistance: ₹1,120 (200-DMA), ₹1,143 (100-DMA), ₹1,164
As long as the Axis Bank stock remains below ₹1,164, technical charts suggest a bearish to sideways movement. However, if the support at ₹1,077 holds, the stock could consolidate in the ₹1,077 to ₹1,164 range before any breakout.
📊 Axis Bank Share Price Performance Over Time
Here’s how the stock has performed in different time frames:
- 1 Month: -8%
- 6 Months: +12%
- 1 Year: -15%
- 3 Years: +63%
- 5 Years: +157%
Despite the short-term weakness, long-term investors have enjoyed significant returns. However, current market sentiment suggests caution is warranted.
📉 Analyst Reactions: What Are Brokerages Saying?
Nuvama Institutional Equities
Nuvama downgraded Axis Bank to a ‘Hold’ rating citing "volatility in asset quality" and slashed the target price from ₹1,400 to ₹1,180. The brokerage also cut FY26 and FY27 EPS estimates by 5% and 6% respectively.
"Axis Bank has been the slowest in passing rate cuts among peers. Its net interest margins are compressing while slippages are rising," said the report.
Systematix Maintains 'Buy', But with Caution
Systematix retained its 'Buy' rating but trimmed its target due to revised NPA recognition methodology by the bank, which caused a one-time "technical" rise in bad loans.
💬 Should You Buy Axis Bank Shares Now?
While some analysts see this as a bottom-fishing opportunity given the long-term uptrend and recent correction, others advise caution. The short-term trend is bearish, and unless the price sustains above ₹1,120–₹1,143, the bulls may struggle to regain control.
If the support at ₹1,077 breaks, a slide toward ₹959 is likely, where the 200-week moving average lies. Hence, it’s a wait-and-watch game for now, especially with market sentiment turning cautious post Q1FY26 earnings.
📈 Google Keyword Trends – What People Are Searching
According to Google search trends, users are increasingly looking up phrases like:
- axis bank share
- axis bank share price
- axis bank stock price
- axis bank share price today
- nse axis bank
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- axis bank share rate
This shows high public interest and trading activity around Axis Bank shares — making it a key stock to watch in the banking sector.
🧾 Final Thoughts: Axis Bank Stock – Hold or Fold?
Axis Bank has delivered in the long run, but the short-term outlook appears cloudy due to margin pressure, asset quality issues, and weak Q1 numbers. Technical support at ₹1,077 is critical. If held, the stock may stabilize, but a breakdown could drag it to ₹959.
Traders should keep an eye on key resistance levels and trendline supports. Long-term investors may use dips cautiously to accumulate, especially if positive triggers return in the upcoming quarters.
Always consult your financial advisor before making any investment decisions.
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