Technical Analysis

Ashok Leyland (₹143.45): BUY

Gurumurthy K |BL Research Bureau | | Updated on: Jun 02, 2022

The 21-Day Moving Averge (DMA) has crossed over the 200-DMA in the chart.

The short-term outlook for the stock of Ashok Leyland is bullish. The stock has risen 2.46 per cent on Thursday showing signs of strength. The 21-Day Moving Averge (DMA) has crossed over the 200-DMA. This also strengthens bullish case and indicates that the downside could be limited. Immediate support is at ₹140. Next strong support is in the ₹137-₹136 region. Intermediate dips to these supports are likely to see fresh buyers coming in. The stock can rise to ₹151 in the next one-two weeks. The level of ₹151 is a good resistance. A short-lived dip from ₹151 to ₹145 cannot be ruled out. However, an eventual break above ₹151 will see the rally accelerating towards ₹163 in the next couple of months.

Traders with a short-term perspective can go long at current levels. Accumulate longs on dips at ₹141. If the stock dips below ₹140, buy more at ₹138. Keep the stop-loss at ₹134. Trail the stop-loss up to ₹147 as soon as the stock moves up to ₹151. Move the stop-loss further up to ₹153 when the stock touches ₹156 on the upside. Book profits at ₹158.

(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)

Published on June 03, 2022
COMMENTS
  1. Comments will be moderated by The Hindu editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

You May Also Like

Recommended for you