Investors with a short-term horizon can sell the stock of Apollo Tyres at current levels. On Wednesday, the stock plunged 7 per cent accompanied by above average volume, conclusively breaking a key support at around ₹215. Following a medium-term uptrend from the significant support at ₹160, the stock encountered resistance at ₹242 in November and began to witness selling pressure. Retesting this resistance level in early December, the stock started to decline. Since then, it has been on a short-term downtrend. Further, the recent fall has emphatically breached the stock’s 21- as well as 50-day moving averages and is hovering well below these levels.

The daily moving average convergence divergence indicators is displaying negative divergence, backing the stock’s reversal, and is likely to enter the negative terrain. The stock’s outlook is bearish. Sell the scrip with a stop-loss at ₹212 levels. The short-term targets are ₹199 and ₹195.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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