The stock of Apollo Tyres has resumed its overall uptrend. The stock has formed a strong base between ₹265 and ₹275 over the last few weeks. The rise on Tuesday indicates the end of the corrective fall that has been in place since mid-September. Strong support is at ₹265. Dips to this support if seen in the coming days are likely to see fresh buyers coming into the market. The stock can rise to ₹315-320 over the next two-three weeks. Traders can go long at current levels.
Accumulate on dips at ₹270. Keep the stop-loss at ₹255. Trail the stop-loss up to ₹285 as soon as the stock moves up to ₹293. Move the stop-loss further up to ₹298 when the stock touches ₹305 on the upside. Book profits at ₹315.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading)