We recommend selling Ashok Leyland at a current market price of Rs 132 and sell more on any rise around the Rs.136 level for the downside target of Rs.120, says Nandish Shah of HDFC Securities.
After making an all-time high level of Rs 168 in May, Ashok Leyland witnessed a heavy selling pressure with the rise in Volumes where it fell by more than 20 percent in just 33 trading sessions.
The stock price also closed below its 200-Day SMA on Monday for the first time since May 2017 indicating weakness in the stock. Oscillators and momentum Indicators like RSI and MACD is showing weakness on daily charts.
Therefore, we recommend selling Ashok Leyland at a current market price of Rs 132 and sell more on any rise around the Rs.136 level for the downside target of Rs 120. A stop loss can be placed above Rs 140 level.Disclaimer: The author is Technical & Derivatives Analyst at HDFC Securities. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.