Todays Pick

Ashok Leyland (₹134.4): SELL

Gurumurthy K BL Research Bureau | Updated on November 25, 2021

The short-term outlook for the stock of Ashok Leyland is bearish. The stock has tumbled about 13 per cent from the high of ₹153 made November 16. The bounce from this week’s low of ₹130 failed to see a strong follow-through rise. The pull-back seen over the last two days keeps intact the downtrend that has been in place since last week. The stock has the potential to fall towards ₹122-120 in two weeks or so. Traders can go short at current levels. Accumulate shorts at ₹137 on any intermediate bounce seen if any. Stop-loss can be placed at ₹142. Trail the stop-loss down to ₹131 as soon as the stock moves down to ₹127. Move the stop-loss further lower to ₹128 as soon as the stock falls to ₹124.

Book profits at ₹122. The bearish outlook will get negated if the stock breaks above ₹138 from here. Such a break can take the stock up to ₹143-145 again. From a medium-term perspective, the region between ₹122 and ₹118 is a crucial support zone. As such, the chances of seeing a fresh rally from this support zone cannot be ruled out.

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

Published on November 26, 2021

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