Prabhudas Lilladher recommends buying these 3 tyre stocks with upto 25% upside
Apollo Tyres' recent higher bottom formation on the daily chart, supported near the 518 level, signals a positive bias for further gains. The Relative Strength Index (RSI) has retreated from overbought territory, suggesting continued strength and potential for upward movement. A break above 560 would confirm a breakout and trigger further advances.
have been enjoying an upward rally in the past few months. Major players like and JK Tyres have enjoyed a surge of nearly 16% on the charts.With the reports of increase in the price of tyres, the stocks from the sector may come under the radar of investors positioning them strongly on a fundamental basis. In addition, taking into account the technical placement of the tyre stocks, domestic brokerage firm has listed 3 stocks that are an attractive buy.
Here is a list of stocks suggested by Prabhudas Lilladher:
Apollo Tyres | Target price: Rs 686; Stop loss: Rs 500; Upside potential: 24.7%
The stock has currently indicated a higher bottom formation pattern on the daily chart taking support near the 518 zone and has improved the bias to anticipate a further rise. The RSI has cooled off from the overbought zone and is well placed to indicate strength and carry on with the positive move further ahead. Above 560 it would confirm a breakout to trigger further upward move.
| Target price: Rs 3,350; Stop loss: Rs 2,520; Upside potential: 23%
The stock has recently picked up well moving past the 50EMA and 100 period MA to improve the bias and currently with a higher bottom formation pattern on the daily chart has once again shown strength to carry on with the positive move further ahead. The RSI has cooled off from the overbought zone and is well placed indicating a trend reversal to signal a buy and has much upside potential from current levels. Above 2940 it would confirm a trendline breakout to trigger for further upward move.
JK Tyres | Target price: Rs 600; Stop Loss: Rs 435; Upside potential: 26.5%
The stock has picked up well from the important 200 period MA at 390 zone and has improved the trend moving past the 50EMA and 100 period MA zone to anticipate further rise in the coming days. The RSI has indicated strength and has much upside potential from current levels. A decisive breach above the 510 zone shall further strengthen the trend and can expect further upward movement.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Source: Stocks-Markets-Economic Times
