Today's Pick

Apollo Tyres (Rs 67.2): Sell (Recommendation for 6 th Jan)

D. Yoganand | Updated on January 06, 2011


We recommend a sell in the stock of Apollo Tyres from a short-term perspective. It is seen from the charts of the stock that after recording an all-time high of Rs 88.8 in September 2010, it changed direction and has been on a medium-term downtrend. In early December, the stock encountered resistance at Rs 72 — a significant intermediate-term resistance level and resumed its downtrend. Moreover, the stock once more encountered resistance just below this key level around Rs 71, where its 200-day moving average also provided resistance and tumbled 4.7 per cent with good volumes on Wednesday. With this decline, we observe that the stock has formed a bearish engulfing candlestick pattern that implies bearish reversal. The daily relative strength index has re-entered in to neutral region from the bullish zone and weekly RSI is hovering in the neutral region. Daily moving average convergence divergence oscillator is featuring in the negative territory and weekly MACD is on the verge of entering this territory, indicating a downward momentum. Our short-term forecast on the stock is bearish. We expect it to decline further until it hits our price target of Rs 65 or Rs 63 in the approaching trading sessions. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 69.5.

Published on January 05, 2011

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like