Despite a sharp fall in overall market, the Ashok Leyland's counter has managed to remain firm. Not only the short-term position has shown an improvement, the long term outlook is also promising for the stock.The stock had bottomed out at Rs 20 during last October. The formation of a higher bottom at Rs 27 during the month of April this year was first sign of an improved outlook.
The position further strengthened when the stock crossed the resistance level of Rs 51 recently. The rally was accompanied by a smart jump in volumes. The medium term MACD is in a major uptrend. Similar can be said about other oscillators.
Long positions can be taken for short to medium term gains. The stock has minor resistance at Rs 62, but a move above would accelerate the rally. For long positions, stop loss should be kept at Rs 52.
-- Deepak Singh Tanwar
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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