Choice Broking Positive on Chennai Petro, ASK Automotive: Here’s Why

Three Chart Setups Put Support Levels in Focus

Choice Broking’s calls hinge on whether key technical levels hold, with a separate bearish setup emerging in PNB Housing Finance.

Chennai Petroleum’s trend remains constructive, but momentum is moderate

Choice Broking’s Sachin Gupta recommended buying Chennai Petroleum in cash at ₹1,475, with a stop-loss at ₹1,430 and a target of ₹1,570. The stock closed at ₹1,475.60 on Friday after recent volatility, and the brokerage described its chart as showing signs of recovery.

The technical case rests on the shares holding above the 50-day exponential moving average and the middle Bollinger Band, both near ₹1,446.90, while remaining above the 200-day EMA. The RSI reading of 52.95 points to improving momentum, though the broker noted that bullish strength has yet to build decisively. That makes the ₹1,430–₹1,380 support zone important: a sustained move above ₹1,475, accompanied by strong volumes, could support further gains, while weakness below support would undermine the recovery setup.

ASK Automotive approaches a closely watched support band

For ASK Automotive, the recommended cash-market buying range is ₹540–₹550, with a stop-loss at ₹527 and targets of ₹565 and ₹580. The stock was at ₹550.75 after correcting sharply from its recent peak of ₹688.60. Choice Broking sees signs of stabilisation, but says a sustained recovery is needed to improve the near-term price structure.

The key technical feature is the ₹527–₹532 support zone, where the 50% Fibonacci retracement level at ₹531.95 aligns with the rising 200-day EMA at ₹527.86. The brokerage says holding this area could allow a bounce towards ₹569 and then ₹596. Those are chart-based recovery levels; the stated trade recommendation sets lower targets of ₹565 and ₹580. A decisive break below ₹527, by contrast, could expose the next support near ₹495.

PNB Housing’s breakdown creates a contrasting bearish call

The third recommendation is a sell in PNB Housing Finance futures at ₹1,090, with a stop-loss at ₹1,140 and targets of ₹1,040 and ₹1,000. The stock fell 4.34% to ₹1,089.10 after breaking below the lower trendline of a multi-month ascending channel. Choice Broking also pointed to rising selling pressure and a move below a key moving average and the middle Bollinger Band.

Its RSI of 39.12 adds to the weak near-term chart picture. The trade depends on that weakness persisting; a move above ₹1,140 would cross the stated stop-loss and challenge the short thesis. The contrast with the two buy calls shows why these recommendations should be assessed stock by stock rather than treated as a single view on the broader market.

The levels matter more than the labels

These are short-term technical setups, with each trade tied to a specific entry range, invalidation level and target. Investors should distinguish a chart-based recommendation from an assessment of a company’s earnings, valuation or long-term prospects; the information provided does not offer that fundamental analysis. Price levels can also be crossed quickly, so the stop-loss is central to understanding the risk attached to each call.

Key Highlights

• Chennai Petroleum: buy at ₹1,475; stop-loss ₹1,430; target ₹1,570.
• Chennai Petroleum’s support zone is ₹1,430–₹1,380; the RSI is 52.95.
• ASK Automotive: buy at ₹540–₹550; stop-loss ₹527; targets ₹565 and ₹580.
• ASK Automotive’s chart support lies near ₹527–₹532; a break below ₹527 could expose ₹495.
• PNB Housing Finance futures: sell at ₹1,090; stop-loss ₹1,140; targets ₹1,040 and ₹1,000.

Investor Note: Treat these calls as technical trading ideas rather than standalone investment recommendations. The stated levels define the brokerage’s setups, but investors should consider their own risk tolerance and avoid assuming that a projected target will be reached.