IRCTC, Ashok Leyland share price outlook decoded by Bonanza Portfolio

IRCTC, Ashok Leyland share price outlook: Vishal Wagh, Research Head at Bonanza Portfolio highlights technical analysis for traders and investors on IRCTC and Ashok Leyland. Detail analysis will help them to understand the trading levels and stop losses on their stocks. IRCTC share price today is Rs 1905, down Rs 33 or 1.7%. Ashok Leyland share price today is Rs 129.65, trading flat.

Vishal said that IRCTC has corrected more than 76.40 from the top of February 2020 at Rs 1994. From pandemic lows, it has managed to bounce back till Rs 1974 till yesterday, the whole cycle seems completed and it is getting ready for new moves once it crosses all-time high. In the whole momentum, it has shown major support at 50% retracement zone near to Rs 1315 levels where the longer-term support exists now.  On the first trading day of the March series, it has already crossed its monthly R1 levels of Rs 1893 with a stronger 10% upside as it has entered the future and option basket. For the current month, it is expected to trade above Rs 1810 and once it crosses the all-time high of Rs 1994 it will move in uncharted territory where the sky will be limited for IRCTC.

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VIshal says Ashok Leyland has managed to multiply itself more than four times from the lows of March 2020 but still, it is far away from the all-time top of May 2018 i.e. Rs 167.50. So, the down cycle in the stock has started much more before the pandemic. It has completed a nearly two-year down cycle and managed to retrace 76.40% of the total correction. On the monthly chart, it is not showing any significant correction in the last eleven months. Whereas, the weekly chart, it is showing flag patterns. The strong green candles followed by sideways consolidations and again new high get it to place. Normally, this kind of pattern has been observed in very strong stocks which managed to multiply the values in a very short duration. 

On the daily chart, post bearish diversions on RSI last month, the stock has corrected from Rs 138 to Rs 121 and now it is again testing its recent highs but the RSI is failed to show any kind of strength so far. Stock is sustaining well above 20 DEMA and 50 DEMA and managed to close above 8 days rolling pivot too. On the flip side, below 50 DEMA of Rs 118, Ashok Leyland may go in the consolidation zone and may retrace at least 38.40% of the current rally from 33 levels i.e. Rs 98.

On the first day of the month, it has witnessed support at its weekly and monthly central pivots which has a top balance near Rs 125 zones and a lower balance near Rs 112 zones. Till the time Ashok Leyland is holding above Rs 125, there are all chances of it to cross recent highs. In failure to do so, it may test lower support till Rs 112 levels