Ashok Leyland (Rs 25.7)

Following the announcement of its second quarter results, the stock jumped 6.6 per cent on Friday. The company posted 7.4 per cent decline in net profit to Rs 142.6 crore compared with Rs 154.1 crore in the same quarter of previous year. Nevertheless, its total income climbed 6.13 per cent to Rs 3,319.91 crore.

After finding support in late August this year, the stock changed its direction and began to trend upwards. Since then, the stock has been on a medium-term uptrend. The stock has gained 6.6 per cent for the week, decisively breaking through its key resistance at around Rs 25. There is an increase in volume over the past six trading sessions. But the stock is currently testing its 200-day moving average and faces resistance at Rs 26. A conclusive rally above Rs 26 will take the stock higher to Rs 27 and then to Rs 29 in the medium-term.

Failure to rally above its immediate hurdle will pull the stock down to Rs 24.5 and then to Rs 23. Strong fall below Rs 23 will mitigate the stock's medium-term uptrend and the supports at Rs 21.3 or Rs 20 will the tested in the forthcoming months.

Ipca Laboratories (Rs 426.6)

The stock nose-dived more than 12 per cent to register an intra-day low at Rs 401 on November 8, on the announcement that the company was halting exports to the US until quality issues from its Madhya Pradesh plant are resolved. Ever since marking an all-time high at Rs 495 on October 11, the stock has been on a short-term down trend. It has formed a bearish engulfing candlestick pattern in its weekly chart implying bearish reversal in trend.

The stock is trading well below its 21- and 50-day moving averages and is now testing important support at Rs 420. An emphatic decline below this support will pave the way for a down move to Rs 390 and then to Rs 375 in the ensuing weeks. Subsequent long-term support is positioned at Rs 350. Key resistances for the stock are at Rs 450 and Rs 470. Resistance beyond Rs 470 is at Rs 495.

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