Ashok Leyland - Profit Booking

Ashok Leyland has appreciated from Rs 30 to its current level of Rs. 37. The stock looks to have done reasonable appreciation in this rally. Hence the first call to start booking profits on this stock.

• The stock followed a fibonacci retracement of 38.2% from its first low in mid June. The stock is now just about reaching this trendline.
  
• MACD is yet to give a divergent signal with the help of the column bars. RSI has some strength in terms of support at this level.

If one like to take risk in the stock, one could probably wait for some more time to decide the next signal from the stock. However, profit booking at this time seems to be the right move.