Apollo Tyres shares jump 7% to hit one-year high; key technical levels to watch

Shares of Apollo Tyres Ltd rose sharply in Tuesday's trading session to scale their one-year highs. The stock surged 7.10 per cent to hit a 52-week high of Rs 485 over its previous close of Rs 452.85. It was last seen trading 2.58 per cent higher at Rs 464.55. At this price, the scrip has gained 41.59 per cent on a year-to-date (YTD) basis and 14.15 per cent in the last six months.

The counter saw heavy trading volumes today as 2.91 crore shares changed hands on BSE at the time of writing this story. The figure was way more than the two-week average volume of 1.29 lakh shares. Turnover on the counter came at Rs 1,302.69 crore, commanding a market capitalisation (m-cap) of Rs 29,570.30 crore.

The tyremaker reported a consolidated net profit of Rs 474 crore in the second quarter ended September 30 (Q2 FY24), up 165 per cent year-on-year (YoY), compared to Rs 179 crore in the year-ago period.

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Total income rose by six per cent, YoY, to Rs 6,304 crore for the quarter in review, compared to Rs 5,962 crore in the July-September quarter last year.

On technical setup, support on the counter could be seen at Rs 450 level. "Immediate support on the counter is at Rs 450. A decisive move above Rs 470 can push the stock towards Rs 490 level," Soni Patnaik from JM Financial Services told Business Today TV.

"Support will be at Rs 450 and resistance at Rs 490. Expected trading range will be between Rs 424 and Rs 525 for next couple of months," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 70.97. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 27.64 against a price-to-book (P/B) value of 2.89.

The scrip has an analyst target price of Rs 458, Trendlyne data showed, suggesting a potential downside of 2 per cent in a year. It has a one-year beta of 0.2, indicating low volatility on the counter.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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