The stock of Apollo Tyres is on a strong footing. The price has been rising consistently since mid-June. On Tuesday, the stock surged 6 per cent breaking above the key resistance at ₹233. This strengthens the upmove. The stock can test ₹270 in the next couple of weeks. It also has the potential to target ₹300 over the next one month. Support will be in the ₹233-₹230 region. It can limit the downside.
Traders with a short-term perspective can go long at current levels. Accumulate longs on dips at ₹235. Keep the stop-loss at ₹228. Trail the stop-loss up to ₹259 as soon as the stock moves up to ₹267. Move the stop-loss further up to ₹278 as soon as the stock touches ₹285 on the upside. Exit the shorts at ₹295.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)