Nifty outlook & stock picks by Vinay Rajani: Buy Ashok Leyland, Tata Steel

The Nifty50 has recovered more than 62 per cent of the entire fall which was registered from 14,653 to 14,222

Sharp pullback negates the possibility of a down trend

From the low of 14,222, the Nifty50 index registered sharp recovery towards 14,546 in a short span of time. This recovery has recouped more than 62 per cent of the entire fall which was registered from 14,653 to 14,222. Retracement of more than 62 per cent is considered as a negation of a primary down move. Bullish trend of Nifty has now got new support at 14,222 and with that stoploss longs should be held.

Stock picks:

Buy Ashok Leyland (119.5) | Target: Rs 127 | Stop-loss: Rs 114

The stock has broken