Ashok Leyland (₹209.85)
Hovering above a support
Ashok Leyland’s stock has been on a decline since August last year. The fall was triggered at the resistance of ₹260. However, the price action since November shows that the downtrend has lost momentum. For over two months, the stock has largely remained in a sideways trend. Notably, there is a strong support at ₹200 where a couple of trendlines coincide.
Also, the long-term trend is bullish. So, the stock can capitalise the ₹200-210 price band to establish a fresh rally. This upswing can lift the stock to ₹280. So, buy at ₹209 and at ₹200. Stop loss can be at ₹185. When the price touches ₹240, modify the stop-loss to ₹220. Tighten the stop-loss to ₹245 when the stock reaches ₹260. Exit at ₹280.
Jindal Saw (₹267.50)
Indicates trend reversal
Jindal Saw’s stock has largely been moving in a sideways band of ₹225-270 since mid-January. The price rallied sharply leading to the stock breaking out of ₹270 last Thursday. The stock has moved above both the 20- and 50-day moving averages. These factors hint at a potential bullish reversal in trend.
That said, there is a possibility that the price can moderate to ₹250 before the next leg of rally. An upswing post this can lift the stock to ₹375 in the short run. Hence, traders can buy Jindal Saw at ₹265 and accumulate at ₹250. Place stop-loss at ₹210 initially. Move this up to ₹300 when the price rise to ₹320. On a rally to ₹350, alter the stop-loss to ₹330. Book profits at ₹375.
Vedanta (₹445.35)
Signs of a rally
Vedanta’s stock saw its price drop from ₹525 to ₹390 between December last year and February. However, it has been appreciating since early March as ₹390 provided support. The price is now above both the 20- and 50-day moving averages, a positive sign. Also, on the daily chart the scrip has formed a higher high.
So, the probability of a rally from the current level is high. But there might be a price drop to ₹415 before that. Participants can go long on Vedanta at ₹445 and buy more shares at ₹415. Keep stop-loss at ₹380. When the price touches ₹480, revise the stop-loss to ₹460. Raise the stop-loss further up to ₹480 when the stock hits ₹500. Liquidate the longs at ₹525.