Will Ashok Leyland Make Fresh 52-week-high After 5% Intraday Rally?

Ashok Leyland is a large cap company that recorded a market cap of Rs 48,269.93 Cr during Friday's closing session. Ashok Leyland is a leading commercial vehicle manufacturer in India. The shares of Ashok Leyland opened today on the NSE at Rs 159.70 apiece and clocked an intraday high of Rs 167.80 logging a gain of 5.07%. However, the stock closed at Rs 164.45 apiece which is an upside gap of 4.51% over the previous close of Rs 157.35.

The second-largest manufacturer of commercial vehicles in India, Management, forecasted for a double-digit EBITDA margin in 2023-24 and a mid-teens EBITDA margin in the medium run at its annual investor meeting on June 15.

The shares of Ashok Leyland made a 52-week-high of Rs 169.45 on (06-Sep-2022) and a 52-week-low of Rs 128.20 on (17-June-2022), indicating that at the current market price the stock is trading 2.95% below the 1 year high and 28.27% above the 1 year low.
Nainesh Thakkar, Head of One Percent Academy by Fisdom said "Ashok Leyland has gained a good momentum in the past 3 months. In 2018 the stock made a high of ₹167.50 and post that it has never given a monthly close above ₹156.

The current market price is ₹165 and we expect that it will give its first monthly close above the previous top. The indicators are all showing positive signals. The daily, weekly and monthly RSI are all above 60 and the stock has successfully stayed above the 13 EMA and has taken ample support from the moving average on the monthly chart. Once the stock comes in the All time high territory, the momentum will continue upwards.With the break of ₹169 , the previous high, we expect the stock to have positive momentum. One can enter a long trade with a strict stop loss of its previous swing low of ₹133 and can look for upside targets of ₹ 200 - 250."

Commenting on the outlook of the stock, A R Ramachandran, Co-founder & Trainer-Tips2trades said "Ashok Leyland is bullish but also overbought and now has next resistance at 171.3 on the Daily charts. A daily close below support of 161 could pave the way for a target of 145 in the near term."

During Q4FY23, Ashok Leyland reported promoters shareholding of 51.53%, FIIs stake of 14.85%, DIIs stake of 22.15%, Govt stake of 0.07% and public stake of 11.40%.

Ashok Leyland Ltd (ASHOKLEY) is mid cap stock which holds almost 33% stake in its business (commercial trucks etc) category and its evolving and sustained. Currently it is trading at its almost all time but according to me it is not the profit booking time instead hold tight to gain more. Very soon we can see 193 and 200 to 245 And if stocks sustain above 200 levels that will be an indication that this stock price is getting ready for the new highs. Price right now in higher lows and equal highs formation. Technically whenever it will get breakout and sustains, nearly 30% upside movement possible from there. Most recent safest swing support is around 135, so we can consider this stop loss in it as 134 is anyone want to encash the upcoming breakout in it. About to breakout and not in overbought (weekly) zone as of now. RSI is 64 at weekly and 79 at daily time frame. So, any dip from here should be considered as "Buy on Dip" strategy considering strict stop loss at given levels according to V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT).

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