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Investors with a short-term horizon can sell the stock of Apollo Tyres at current levels. The stock has been in an intermediate-term downtrend since encountering a key resistance at ₹300 in August 2018. Medium- as well as short-term trends are also down for the stock.
In late June, the stock met with a resistance at ₹205 and continued to trend downwards. It has been in a downtrend since then. While trending down, the stock beached a key support at ₹190 and the 21- and 50-day moving averages.
On Tuesday, the stock breached a key support at ₹175 by tumbling 4 per cent accompanied by above average volume. It hovers well below the 50- and 200-DMAs. Also, the daily and the weekly relative strength indices feature in the bearish zone backing the downtrend. Besides, both the daily and weekly price rate of change indicators hover in the negative territory implying selling interest.
Overall, the short-term outlook is bearish for the stock. It can extend the downtrend and reach the price targets of ₹160.5 and ₹157.5 in the ensuing trading sessions. Traders can sell the stock with a stop-loss at ₹171.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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