The stock can give a good move up to the level of 145. Buy - 134+ T1 - 137+ (By 07-02-2021) T2 - 145+ (By 12-02-2021) SL - 132
Triggers - Better earnings are expected to be reported for Q3. Announcement concerning scrappage policy in the Union Budget is considered good for the automobile's commercial vehicle segment.
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The stock has gone below the crucial support of 130. The sharp decline in the stock price despite of increase in revenue QoQ for December is the increase in cost of raw materials. The decrease in profit margins has led to the company reporting a net loss ~19 crore. However, the stock set up looks positive and the mentioned levels can be reached in a month's time sighting the implementation of scrap age policy of the government of India. The organization would be directly benefitted from it as it deals in the commercial vehicles segment primarily. Revised targets would be the levels of 135 and thereafter 145+ with a stop loss of 123.