Technical Analysis

Apollo Tyres (₹162.5): Sell

Yoganand D BL Research Bureau | Updated on December 11, 2019 Published on December 11, 2019

The stock of Apollo Tyres tumbled 4.4 per cent with good volume on Tuesday, breaching its 21-day moving average and a key support around ₹165. This fall has strengthened the short-term downtrend that has been in place since early November this year. Investors with a short-term view can sell the stock at current levels as the outlook has turned bearish.

Following a medium-term uptrend, the stock encountered a significant resistance in the band between ₹191 and ₹196 in late September and again in early November. This resistance band capped the stock’s uptrend. The stock changed direction in early November. Since then, the stock has been in a short-term downtrend. While trending down, it had breached its 50-day moving average recently. Also, the stock trades well below its 21- and 50-day moving averages now.

With the recent fall, the stock appears to have resumed its short-term downtrend. Moreover, the daily relative strength index has entered the bearish zone from the neutral region backing the downtrend. The daily price rate of change indicator has entered the negative territory implying selling interest.

Traders can sell with a stop-loss at ₹166.5. Short-term targets are ₹156 and ₹152.5.

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

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Published on December 11, 2019
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