Investors with a short-term perspective can consider selling the shares of Apollo Tyres. The stock fell 3 per cent on Wednesday and closed in the red for the third consecutive day.It was on a corrective rally from the January low of ₹127.95. However, this upmove halted last week near ₹149, which is a key trend-line resistance level. After consolidating sideways for a couple of days, the stock has reversed lower.
Wednesday’s sharp fall has taken the stock decisively below the 21-day moving average.
The consecutive fall signals the beginning of a new leg of downmove within the overall downtrend.
Immediate resistances are at ₹140 and ₹142. A fall to ₹136 looks likely. Further, a decline below ₹136 can drag the stock lower to ₹130 and ₹128. Traders with a short-term perspective can go short. Stop-loss can be kept at ₹143 for a target of ₹130.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)