Tyre stocks have experienced a significant upward rally in recent months, with major companies like Apollo Tyres and JK Tyres seeing a nearly 16% increase in their stock prices.
With reports indicating a rise in tyre prices, stocks in the sector may attract increased investor attention, positioning them strongly on a fundamental basis. Additionally, considering the technical positioning of tyre stocks, domestic brokerage firm Prabhudas Lilladher has identified three stocks as attractive buys.
The stock has currently indicated a higher bottom formation pattern on the daily chart taking support near 518 zone and has improved the bias to anticipate for 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 for further upward move. With the chart looking good, we recommend a buy in this stock for an upside target of 686 keeping a stop loss of 500.
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. With the chart looking good, we recommend a buy in this stock for an upside target of 3350 keeping a stop loss of 2520.
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 for further rise in the coming days. The RSI has indicated strength and has much upside potential from current levels. A decisive breach above 510 zone shall further strength the trend and can expect for further upward movement. With the chart looking good, we recommend a buy in this stock for an upside target of 600 keeping a stop loss of 435.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
