Ashok Leyland, India’s second largest commercial vehicle manufacturer continues to show growth in this quarter as well. Sales of its heavy and medium vehicles for FY16 rose up to 46 per cent as compared to last quarter. The leader in this segment, Tata Motors reported growth of 26 per cent only.
AL has obtained a market share of 18.5% in its segment. The company has been aggressively expanding its network by opening service outlets at various locations especially in South India. This has helped the company gain market share in trucks segment. Also, a shift towards higher tonnage vehicles and new product introductions helped market share grow further.
Company also designs and develops military vehicles under newly floated company, ‘Ashok Leyland Defense Systems’. AL is the largest supplier of logistics vehicles to the Indian Army. It has supplied over 60,000 of its Stallion vehicles to army. Recently, it received new orders worth Rs. 800 crores for supply of 450 field artillery tractors and 825 ambulances; which would further boost its revenues. The company is likely to get more orders from Govt. of India’s initiative – ‘Make in India!’
In providing service to its existing customers, company has opened over 400 full-service outlets across India; which itself is a sign of growth. It has also started 24×7 helpline called ‘tatkAL’ through which service staff could reach a damaged vehicle within 4 hours and restore it in 48 hours – across
Our opinion on this stock: – Ashok Leyland has received several orders for which it will take a year or two to fulfill. Especially the order from military is going to execute in two years. Sales for city buses is also geared up as orders for about 2500 buses from JnNURM phase II are expected to be fulfilled next year. The company’s share looks fundamentally strong. Currently, the stock is trading around Rs. 98 to Rs. 102/-. The stock could be bought for a period of nearly 1 year or more to earn good returns.
UK 10-yr yield dropped below 1% for the first time
US 10-yr treasury yield hit 4-year low
German 10-yr bund yield suffered record closing low
Japan 10-yr yield just hit a record low of -0.22% low
Falling yields is a good news for gold and a bad news for equity markets. Also reflects economic malaise in advanced world.
Just imagine.. Japan (record high debt to GDP) can borrow for 10-years for negative yield!
Weekly chart – Cypher set up
The above chart shows a cypher formation could be in the making if we see a reversal from the area around point C. Sterling has been heavily sold and is now oversold on the daily as well as intraday time frame.
Furthermore, the pair is also flirting with a long-term rising trend line support seen on the weekly chart below
A rebound from rising trend line followed by a break above the double top neckline would increase odds of the cypher formation.
Here I talk about reasons for rise in gold to highest since Aug 2014 and possible action in the near future. This if followed by take on US dollar, Brent and major currency pairs.
Pair re-entered the falling channel earlier this month. The spot is now eyeing channel resistance again. I doubt the bullish move seen today as Brexit referendum is still a week away and safe haven demand for CHF could spike again.
I had taken note of the two rising trend lines on the daily chart earlier today at EUR/USD – Tale of two trend lines
The first trend line was breached earlier today and now the pair is flirting with second larger trend line support.
Next support and a strong one is 1.11 (daily 200-MA). A break below the same would establish lower highs and lower lows formation.
AUD/USD daily chart
Comm dollars are feeling the heat of the ongoing risk-off and slide in oil prices. A falling trend line has been established and the chart tells me a break below the rising trend line seen now around 0.7200 would signal we are heading back to lows seen in January.
Today’s red candle has increased the odds of pair testing rising trend line support. Whether it breaks below the same or rebounds depends on Brexit referendum outcome and oil prices.
Brent oil daily
I have three rising trend lines – Black, Red and Blue. The black one and the red one have been breached. Next on cards is the blue trend line support seen today at $45.50. However, as a trader I would like to see red trend line breached on day end closing basis.
GBP selling continues after Bank of England joined Brexit scaremongering bandwagon. BOE’s take overshadowed better -than-expected UK retail sales data.
Spot now trades around 1.4056 (76.4% of 1.3835-1.4770).
NOw the question is whether Cable will drop below 1.3835 before referendum?
Black rising trendline stands breached and selling is gathering pace. The next trend line – blue stands exposed. The support is seen at 1.1137 and is followed by daily 200-MA level of 1.11.