Technical calls from HDFC Securities: Buy Ashok Leyland, Tata Elxsi

Technical calls from Vinay Rajani, Technical & Derivatives Analyst, HDFC securities

Remain Cautious till Nifty trades below 12,350; mid,small-caps to outperform

Nifty formed bearish engulfing pattern on January 20, 2020 and saw a follow-up selling in the next session. Support for the Nifty is seen around 12,100 odd levels. Traders should remain cautious unless the index surpasses 12,350 resistance. However, Midcap and Small cap stocks are expected to continue their outperformance.

BUY ASHOK LEYLAND (Rs 86.3): | Target: Rs. 90.5 | Stop-loss: Rs 84

The stock price has surpassed multiple top resistances placed at 85 odd levels. Volumes have been rising along with the price rise for last 5 trading sessions. Moving average and oscillator setup is bullish on short-term charts.

BUY TATA ELXSI (Rs 954.7) | Target: Rs. 990 | Stop-loss: Rs 930 

After three days of running correction, the stock has resumed its uptrend with rise in volumes. In the previous week, the stock surged with big jump in volumes and entered in bullish momentum phase. It has registered an inverse head and shoulder breakout on the weekly charts.

Disclaimer: Views expressed are the author's own. He may have positions in one or all of the above mentioned stocks.