"Please do let me know the ALE pin connected to CLK is ok "

I don't suppose it is OK. And particularly if you are using any MOVX, then one ALE pulse is skipped during each access to external memory.

And when planning an external clock source make sure you satisfy the tCLK and tCHH specs of the encoder chip. Also the tSDV ( SEL valid to stable selected data byte) is at a maximum of 65ns.

I think most of your problems are with your clock pulses. Cross check it.

Raghu