Go long in Ashok Leyland, says Shubham Agarwal

Shubham Agarwal of Motilal Oswal Securities told CNBC-TV18, "Ashok Leyland is a short-term call. Yesterday, we did see a breakout happening from the very contracted zone that it was trading into. The overall set up also remains positive. We have a mean reversion happening within the oscillation that is there from Rs 85 to Rs 100. Given that, it is already quoting at the lower end of the zone and then we have additional breakout that has happened yesterday and that has happened with a gap, which signifies that the momentum is very high then.""We had a relative outperformance and the market was going down, still it was not impacted. So overall things are in sync and we expect that the level of Rs 100 can be re-tested again, which is the upper band of the zone. For this long trade, one can look to keep a stop loss at Rs 88 which is marginally below the gap area that it has formed yesterday," he said."If we look at the movement in Larsen & Toubro, generally a continuation pattern is something that is believed to be a continuation to the overall trend and within a downtrend, if that is formed, that rages the odd that the trend is very much intact and we will see further momentum in that direction. So we have already seen a breakdown happening from this continuation pattern yesterday. So it would be very difficult for the stock to sustain that. Even the medium-term chart looks negative.""We already had a sell long time back in L&T. We are continuously revising the target on the downside and we believe that Rs 1,120 is the next level where we might see a pause coming into the stock. So the probability still remains very high given the set up that we have on the charts that the fall should continue and for the sell trade, one can keep a stop loss at Rs 1,330."