ICICIdirect has selected Ashok Leyland as technical pick with potential to provide decent return from a medium term perspective.
ICICIdirect recommends buying Ashok Leyland in range of Rs 75-76.5 for a target of Rs 92 with a stop loss of Rs 68.
Commenting on the rationale, the stock broker said, ''Select auto stocks have been continuously outperforming the market in the recent up move. Ashok Leyland has been one of those stocks that had absorbed the long liquidation pressure since February. The price remained resilient near Rs 65-70 despite the Nifty making a new intermediate low of 7940.
The open interest in the stock lost 40% from February. However, during this period, the declines towards Rs 60-65 were arrested and every time the stock recovered from lows. Recently, we have seen fresh long positions being added in the stock. This are likely to drive the stock price upwards.''
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