Ashok Leyland may test Rs 38-40: Mathew

Technical Analyst, E Mathew is of the view that Ashok Leyland may test Rs 38-40.

Mathew told CNBC-TV18, "If Ashok Leyland is able to sustain above Rs 32, I think we have a nice trading move coming here, which could take you all the way to 38-40."

He further added, "Maruti Suzuki chart is also looking reasonably good. As of now these all look like trading moves to me, in fact Maruti could give you an upside of almost Rs 60-70 from the current levels. Beyond that I think whether it is a Maruti or an Ashok Leyland, all these guys are heading into resistance territory. If one is looking at rate sensitive, I think to that extent the banking sector is one place where I think there is still a lot of steam left. I am a little hesitant on the auto sector as such."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stocks/sectors.