Sell Ashok Leyland Fut; target of Rs 46: Aditya Birla Money 14-07-2011

According to Aditya Birla Money, traders can sell Ashok Leyland futures initially below Rs 49.70 and then on rise to Rs 50.30 with a stop of Rs 51.60 for a target of Rs 46, in its July 14, 2011 research report.

“Ashok Leyland, prices tested the resistance of falling trend line near Rs 52.50 however witnessed selling pressure and turned lower significantly from the same in the last few sessions. The 14-day RSI is turning down from the higher end of its bearish zone while the Stochastic (14/3/3) has made a bearish crossover and is turning down from the overbought territory. As prices also fell below the support of the short-term rising channel sentiment is likely to remain weak towards Rs 48.20 and the recent lows near 46 levels in the forthcoming sessions.”

“On the upside, Rs 51 followed by the trend line near Rs 52 is likely to pose strong resistance. Only a strong close above the latter could invite a notable up move in prices negating the expected scenario. Sell Ashok Leyland futures initially below Rs 49.70 and then on rise to Rs 50.30 with a stop of Rs 51.60 for a target of Rs 46,” says Aditya Birla Money research report.