Ashok Leyland spurts 38% in nine sessions

Ashok Leyland surged 7.66% to Rs 67.50, extending gains for ninth day in a row.

Shares of the commercial vehicles manufacturer have risen 37.9% in nine sessions from its recent closing low of Rs 48.95 on 5 August 2020. During the same period, the S&P BSE Sensex and the S&P BSE Auto index have gained 2.3% and 5.9%, respectively.

The stock is currently trading above its 50-day, 100-day and 200-day simple moving averages placed at 52.07, 48.74 and 63.40, respectively.

On the technical front, the stock's RSI (relative strength index) stood at 82.976. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

In the derivatives market, Ashok Leyland's August 2020 futures are currently trading at 67.75, at a premium of 0.25 points compared with the spot price of Rs 67.50.

Ashok Leyland's option chain for 27 August 2020 expiry showed maximum call open interest (OI) of 43.74 lakh contracts at the 60 strike price. Maximum put OI of 70.65 lakh contracts was seen at 50 strike price.

The company posted a consolidated net loss of Rs 389 crore in Q1 June 2020 compared with net profit of Rs 275 crore reported in Q1 June 2019. Consolidated income from operations for quarter ending June 2020 stood at Rs 1480 crore, tumbling 77% from Rs 6514.73 crore in the same period last year.

Ashok Leyland, flagship of the Hinduja group, is among the largest manufacturer of commercial vehicles in India and also among the biggest manufacturers of buses and trucks globally.

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