The short-term outlook is bearish for the stock of Ashok Leyland. The stock fell over 2 per cent on Thursday, breaking below the key support at ₹176. This level of ₹176 will now act as a good support-turned-resistance and will cap the upside. The 21-Day Moving Average (MA) has been capping the upside consistently since the beginning of this month. This indicates a lack of strong buyers to take the price higher.
The stock can fall to ₹171-170 during the day today. Intraday traders can go short at current levels. Add more shorts on a rise at ₹175.50. Keep the stop-loss at ₹177. Trail the stop-loss down to ₹173.50 when the price falls to ₹172.50. Move the stop-loss further down to ₹172.50 when the price touches ₹171.50. Exit the short positions at ₹171.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)