REC, Ashok Leyland: 7 out of 8 stocks, picked by MSCI, may rally up to 25%

Seven out of the eight stocks included in the MSCI index have outperformed so far this year, with charts demonstrating thrilling optimism. Technically, the positive trend is anticipated to persist and may even see higher elevation. 

MSCI Global Standard Index has added Power Finance Corporation, IDFC First Bank, Cummins India, Astral, REC, Ashok Leyland, Supreme Industries, and HDFC Asset Management Company in its quarterly review and distant ACC. 

Barring Cummins India, which did perform in the current year but the present structure shows sluggishness; all other stocks included in MSCI index are poised for the next bull-run.

Shares of Power Finance Corporation has soared 95 per cent so far this year, with the current formation of “Higher High, Higher Low” indicates further upside of another 24 per cent -20 per cent towards Rs 325. Likewise, the breakout of the “Ascending triangle” in the IDFC First Bank points to an optimistic rally that might stretch towards Rs 110.

REC, Ashok Leyland, and Supreme Industries clinched to a new all-time high, while HDFC Asset Management Company hits new 52-week high following this development on Friday. Shares of REC continue to dominate its bullish bias, scaling higher highs with intent to reach Rs 280-mark. Ashok Leyland and Supreme Industries are projected to rally further towards Rs 225 and Rs 5,000 levels, respectively.

Meanwhile, HDFC Asset Management Company and Astral, which have yet to claim fresh unchartered territories, exhibit no unfavourable bias. The trend is gradual on up move and there appears to have received significant positive response on corrective declines.

Cummins India shares, on the other hand, have plummeted lower post breaching the support of Rs 1,860. This breakdown has ignited a negative bias for the time being. The support for the stock exists at Rs 1,620 and Rs 1,500 levels. 

The stock, ACC that was excluded from the MSCI index now needs to decisively hold the support of Rs 1,850 to avoid witnessing aggravated selling pressure.  

MSCI