Buy Ashok Leyland, Jubilant Food; Sell Biocon: GEPL

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Buy Ashok Leyland, Jubilant Food; Sell Biocon: GEPL

GEPL Capital has come out with its report on top trading picks. The research firm recommends buying Ashok Leyland, Jubilant Food and selling Biocon.

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GEPL Capital has come out with its report on top trading picks. The research firm recommends buying Ashok Leyland , Jubilant Food  and selling Biocon .

Ashok Leyland: After a high of 41 in 2010, Ashok Leyland witnessed a fall till 22 indicating a strong downtrend. The stock has been trading in the range of 24 & 28 forming a triangle pattern in the weekly charts. After a very long consolidation this counter has given breakout from its range trading activities and a close above its short term as well as long term moving averages, with strong volumes. This indicates a strong up move in coming time. In today's price action, the stock was able to surpass its 200-DSMA indicating that smart money is flowing into this counter. Price pattern on daily as well as weekly charts indicate that in coming time a strong up move is on cards. Momentum indicators on daily charts are suggesting a clear cut north side direction for prices. Keeping all these technical parameters in mind, we suggest this counter will be an ideal buy at current price as well as at declines with a stop loss placing at 24 for a target of 30.5.

Jubilant Foodworks: After a period of almost four months, this stock was able to show higher top higher bottom formation on daily charts indicating a trend reversal of ongoing bear run. The stock was able to give a break out above its falling trend line indicating a strong bullishness in coming time. This breakout has come on the back of strong volumes indicating that smart people are entering this stock. The price pattern, has given a breakout from cup and handle pattern which is a bullish sign for this stock. Scanning the weekly charts, we are seeing a range trading breakout after almost four weeks consolidation on the back of above average volume suggesting a strong up move. Keeping all this parameters in mind one can say that Jubilant Food is a clear buy at this price as well as on decline in the area of 820 with a stop loss placing at 795 for a target of 915-920.

Biocon was able to give some relief rally after witnessing a massive fall from price level of 360-365 to directly up to 300 zone. Albeit, the rally from the low of 302 has emerged on a very low volume raising the question about its sustenance on the higher side. Momentum indicators on daily and weekly charts are not showing any major strength in this rally. The price patterns on the daily chart does not indicate that ongoing up move is going to face major supply in the area of 330-335(50DEMA-332).The stock is trading well below its long term moving average (200DMSA-345) indicating that the larger degree trend is still very much down. Technical structure of this stock seems to be very weak and one can go short in this counter on rise around 330-332 with a stop loss placing at 338 for a target of 308.

Institutional holding more than 40% in Indian cos

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To read the full report click on the attachment