Buy Ashok Leyland; target Rs 32-33: Agarwal

One can buy Ashok Leyland for the target of Rs 32-33, as the stock has already been confirmed a breakout level of Rs 24 and decent rally is seen after that, says Shubham Agarwal, CMT, AVP - Sr Technical Analyst, Motilal Oswal Securities.

Agarwal told CNBC-TV18, "Overall auto sector can outperform the broader market. In fact if we see the larger auto stocks we can see that Mahindra and Mahindra (M&M) and Maruti Suzuki India are still doing well despite the market being in a corrective mood." He further added, "Ashok Leyland individually is also placed very well. Rs 24 was the level of breakout which has already been confirmed and we have seen a decent rally happening post that. The movement that has happened in past two three days is just a temporary correction to the upmove that has already taken place. I think this correction can be utilized as a buying opportunity. In medium term we see a target of around Rs 32-33 on that stock which is very much achievable in next two to three months."