IRB Infrastructure nose-dived 24 per cent with extraordinary volumes breaking through a key long-term support around Rs 170 last week .

However, the stock is hovering above its next long-term support at Rs 125. As the stock has fallen steeply and its daily indicators and oscillators are featuring in the oversold levels, we do not rule out a near-term corrective rally to Rs 140 and then to Rs 150.

The stock has breached the lower boundary of the daily Bollinger Bands indicating an oversold counter.

The stock's primary trend is down from its August 2010 peak of Rs 312. A strong weekly close below Rs 125 will strengthen its downtrend and drag the stock down to Rs 108 and to Rs 80 in the medium-term. Significant resistances above Rs 150 are pegged at Rs 170 and Rs 190.

Apollo Tyres (Rs 80.5)

Last week Apollo Tyres did a volte-face and plummeted 12.8 per cent. This reversal was triggered by negative divergence in the daily relative strength index and daily moving average convergence divergence indicators.

The stock has breached its 21- and 50-day moving averages and is hovering well below them.

We notice the formation of a bearish engulfing candlestick pattern in the weekly candlestick chart, implying a bearish reversal in trend.

Further, confirming the change in direction, the stock penetrated its intermediate-term up trend-line last Friday.

The stock can fall to Rs 75 in the short-term. Strong tumble below Rs 75 will drag the stock down to Rs 67 and then to Rs 63.5 in the medium-term. Key resistances are positioned at Rs 85, 89 and Rs 94.

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