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Published on 13/02/2020 11:13:01 AM | Source: ICICI Direct

Momentum Picks - Ashok Leyland, Pantaloons Fashion & Retail By ICICI Direct

Posted in Broking Firm Views - Short Term Report| #Ashok Leyland Ltd. #Trading Report #ICICI Direct #Pantaloons Fashion & Retail Ltd

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Technical Observations

* The stock registered a resolute breakout above the rising trendline joining the major highs of CY17 (| 185) and CY19 (| 236) signalling strength and continuance of the current up trend, thus offering a fresh entry opportunity to ride the next up move in the stock

* The breakout from the rising trend line is supported by strong volume of almost three times the 50 weeks average volume of 26 lakhs share per week highlighting larger participation in the direction of trend

* The immediate support for the stock is at | 254 as it is 38.2% retracement of the current up move and the recent trend line breakout area

* The weekly MACD is in uptrend and is seen diverging from its nine periods average, thus supporting the positive bias in the stock

* Based on the above technical observations, we expect the stock to continue its current up move and head towards | 295 as it is the price parity with the previous up move (| 180 to 250) as projected from the recent trough of | 225 signalling upside towards | 295

Recommendation

Buy Pantaloons Fashion & Retail Ltd @ 265.00 - 270.00 SL 254.00 Target 295.00

 

Technical Observations

* The stock has formed a higher base at the 200 days EMA at | 78 and has witnessed a strong up move during previous week signalling strength and continuation of the up move

* The entire up move since September 2019 low of | 58 is enclosed inside a rising channel highlighting larger participation at the elevated levels

* The stock has formed a bullish Piercing line candle in the weekly chart signalling strong buying demand at lower levels

* The daily 14 period’s RSI has recently generated a bullish crossover above its nine periods average thus supporting the positive bias in the stock

* We expect the stock to continue its current up move and head towards | 89 as it is 123.6% external retracement of the previous decline | 87 to 75 placed at | 89 levels

Recommendation

Buy Ashok Leyland Ltd @ 80.00 - 82.00 SL  77.00 Target 89.00

 

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