Ashok Leyland share price is down today by near 2 per cent (at Rs 126.70 per share levels at 10:01 AM on 19th February 2021). Those who have share holding in Ashok Leyland shares are thinking whether the sell off in the auto stock will go further deep or it's mere profit-booking and the commercial vehicle maker stock will soon pick up upside momentum. For such Ashok Leyland share holders, Choice Broking experts Sumeet Bagadia has listed out top three reasons for Ashok Leyland share price to remain bullish.

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Speaking on the Ashok Leyland share price target Sumeet Bagadia, Executive Director at Choice Broking said, "Ashok Leyland share price has strong support at Rs 125 per stock levels. Those who have share holding in this stock should hold the counter keepin the stop loss below Rs 125 levels. On the upper side, Ashok Leyland shares have resistance at Rs 133 and once this resistance is broken it may go up to Rs 150 per stock levels in the short-term time horizon."

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On Ashok Leyland share strategy if the stop loss below Rs 125 is hit, Sumeet Bagadia of Choice Broking said, "If the stop loss below Rs 125 is triggered, then the next support for Ashok Leyland stock price is at Rs 110. One can buy Ashok Leyland shares around that price level as the overall Ashok Leyland share price outlook is bullish." He said that even at that level, Ashok Leyland share price target for short-term will be the same Rs 150.

Highlighting the top 3 reasons for Ashok Leyland share price being bullish; Choice Broking expert Sumeet Bagadia listed out the following reasons:

1] Budget fueling commercial vehicle demand: The Union Budget 2021 focuses on the infrastructure development leading to rise in commercial vehicle demand. Since Ashok Leyland is a leading commercial vehicle maker in India, it's business outlook seems strong and promising.

2] Unlock fueling auto sales: On account of unlocking activities gaining momentum across India, auto sales are gaining momentum that got reflected in strong December quarter numbers of Ashok Leyland company too. Since the unlock activity is expected to further pick up, we can further expect an increase in sales volume of Ashok Leyland that augurs well for Ashok Leyland share price in the short-term to medium-term time horizon.

3] Announcement of scrappage policy: After the central government's announcement on the scrappage policy, commercial vehicle, two wheeler, light motor vehicles' sales are expected to gain momentum. Since Ashok Leyland is a leading commercial vehicle manufacturer in India, it will definitely benefit from this announcement.