Sell Ashok Leyland above Rs 20: Bhambwani

Technical Analyst, Vijay Bhambwani is of the view that one can sell Ashok Leyland above Rs 20.

Bhambwani told CNBC-TV18, "Auto sector itself is down and you are likely to see a support at Rs 14 levels on Ashok Leyland. As long as it remains above Rs 14 the possibility of a slight upmove from here do remain a fair probability. On the upsides, the closer it approaches Rs 22-25 band the more significant will be the selling because of overrate supply. Investors who have trapped at higher levels will head for the exit route and that is what will cap the upmove. Anything above Rs 20 and I would suggest an exit from Ashok Leyland and investing into Tata Motors, which is relatively speaking a much better play. Even chartically it is showing a higher relative strength comparative vis-à-vis Ashok Leyland."

He further added, "One is better off whenever the markets start to move around in the upward direction in this sector in percentage terms where Ashok Leyland and Tata Motors on a relative comparative basis are concerned. So by all means hold on for now but beyond Rs 20 start thinking of an exit and switching to Tata Motors."

Source: Moneycontrol