Market Trading Guide: Ashok Leyland among 2 stock recommendations for Thursday

The Indian domestic market ended marginally lower, giving up early gains as sectoral divergence weighed on benchmarks through the session. Inflation concerns receded on tempered US sanctions on Iran, easing domestic bond yields and lifting banking stocks, while metals gained on better realization prospects.

However, these gains were largely offset by weakness in IT stocks after the US paused visa appointments amid an immigration crackdown which rekindled margin pressure concerns.

Here are two stock recommendations for Thursday.


Ashok Leyland - Buy | Buying Zone: 178-180 | Stop-loss: Rs 173 | Target: Rs 192

Ashok Leyland is breaking out above the 179 resistance zone that has capped price since April, closing 2.5% higher at 179.05 on expanding volume. The stock trades above its short- and long-term moving averages, with RSI near 65 and rising confirming momentum. A clean higher-high, higher-low structure has formed since the August low. Support sits at 173, while 179 marks the breakout; sustained trade above it extends the uptrend.

Virat Jagad, Sr Technical Research Analyst, at Bonanza Portfolio

NMDC - Buy | Buying Zone: 88-89 | Stop-loss: Rs 84.5 | Target: Rs 95-98

NMDC is breaking out of a multi-week rectangle consolidation between 82.5 and 88, closing 2.6% higher at 88.21 on strong volume expansion. The stock trades above its short- and long-term moving averages, with RSI near 62 and turning up sharply, confirming renewed momentum. The base built since July marks immediate support at 84.5, while 88 was the capping resistance; sustained trade
above the breakout extends the upmove toward higher levels.

Virat Jagad, Sr Technical Research Analyst, at Bonanza Portfolio

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)