Vinay Rajani recommends buying these stocks; hold Nifty with stop at 18,000

The technical analyst from HDFC Securities suggests that Ashok Leyland has one of the strongest set-up on the charts in the auto space

The NSE Nifty recently found support at its 20-day EMA and reversed northward. In the process, the Nifty also managed to hold above the previous top level of 17,947. The 20-day EMA has now shifted up to 18,015 level, which can act as support going forward.

The BankNifty has closed at an all-time high level and we can expect it to continue with its outperformance. Traders are advised to hold longs in Nifty with 18,000 stop loss. On the higher side 18,600 could act as a short term resistance.

Stock recommendations:

Buy Ashok Leyland (Rs 143)
Target