Ashok Leyland may test Rs 89-90, says Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "One of the features which I like in Ashok Leyland is that the leverage has not picked up despite the stock been moving up even in the falling market. If you look at this particular move, from Rs 72-82, I mean what the leverage at Rs 72 levels, we saw that around 22,000 contracts were outstanding in the stock. When it came back to Rs 82, we have seen only 16,000 contracts are there. I think still there is lot of room left in it and possibly towards this expiry also it can move further. I am keeping a target of around Rs 89-90, possibly in one or two weeks before the result announcement." "In the auto space, Maruti has given good numbers and Ashok Leyland is another stock which is likely to give good numbers. So, the particular move in it should continue. It has already consolidated from Rs 65-77. So, I am keeping a stop loss at Rs 77 only which is the higher band of the last consolidation and the best feature of the last consolidation was that Nifty had made new lows, but it remained in that range. So, this kind of feature in the stock generally bodes well. So, I am looking for a target of Rs 89-90," he said.