Comments
The stock of Ashok Leyland (₹92.9) is ruling at a crucial level. It finds strong resistance at ₹103. A conclusive close above this resistance can be a positive. In such an event, Ashok Leyland has the potential to reach ₹146. It finds major support at ₹84 and a close below that level will change the outlook negative and could drag it down to ₹70.
F&O pointers: The Ashok Leyland February futures added 7.49 lakh shares in open interest on Friday. Some cues provided from the option trading indicates that the stock could move in the ₹90-₹100 range.
Strategy: Traders who can wait for a longer period could consider going long in Ashok Leyaland. Initially, the stop-loss can be placed at ₹79 for a first target of ₹118 and then ₹146. It can then be shifted to ₹94 if the stock manages to close above ₹103.
Short-term traders can buy Ashok Leyland ₹95-call that closed at ₹1.70 on Friday. With the market lot being 7,000 shares, one has to fork out ₹11,900; this will be the maximum loss. Traders can exit if the premium rises to ₹20,000 or dips to ₹7,500.
Follow-up: Hold long positions in Bank of Baroda.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.