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APLAPOLLO - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.4

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 3.4

Stock Code APLAPOLLO Market Cap 57,729 Cr. Current Price 2,079 ₹ High / Low 2,151 ₹
Stock P/E 117 Book Value 114 ₹ Dividend Yield 0.28 % ROCE 14.7 %
ROE 10.7 % Face Value 2.00 ₹ DMA 50 1,889 ₹ DMA 200 1,747 ₹
Chg in FII Hold -0.60 % Chg in DII Hold 0.99 % PAT Qtr 120 Cr. PAT Prev Qtr 106 Cr.
RSI 65.8 MACD 54.1 Volume 10,01,299 Avg Vol 1Wk 13,76,631
Low price 1,273 ₹ High price 2,151 ₹ PEG Ratio -8.63 Debt to equity 0.25
52w Index 91.8 % Qtr Profit Var 38.7 % EPS 17.8 ₹ Industry PE 18.7

📊 Technical Analysis

  • Chart Patterns: Price is trading above both 50 DMA (1,889 ₹) and 200 DMA (1,747 ₹), confirming strong bullish momentum.
  • RSI (65.8): Approaching overbought zone, suggesting caution for new entries.
  • MACD (54.1): Positive crossover indicates strong bullish momentum.
  • Bollinger Bands: Price near upper band, showing strength but risk of short-term pullback.
  • Volume Trends: Current volume (10.0L) is below 1-week average (13.7L), reflecting reduced participation despite price strength.

📈 Momentum & Signals

  • Trend: Strong uptrend with mild consolidation.
  • Support Zones: 1,890 ₹ (50 DMA), 1,750 ₹ (200 DMA), 1,273 ₹ (major support).
  • Resistance Zones: 2,100 ₹ (near-term resistance), 2,151 ₹ (52-week high).
  • Entry Zone: 2,000–2,050 ₹ for cautious accumulation.
  • Exit Zone: 2,120–2,150 ₹ unless breakout above 2,151 ₹ occurs.

✅ Positive

  • Strong quarterly PAT growth (120 Cr. vs 106 Cr., +38.7%).
  • Stock trading above both 50 DMA and 200 DMA, confirming bullish structure.
  • DII holding increased (+0.99%), showing strong domestic institutional support.

⚠️ Limitation

  • Extremely high P/E (117) compared to industry average (18.7), suggesting overvaluation.
  • Dividend yield is modest (0.28%), limiting income appeal.
  • RSI near overbought zone signals caution for new entries.

📉 Company Negative News

  • FII holding decreased (–0.60%), showing reduced foreign investor confidence.
  • PEG ratio (–8.63) indicates weak earnings growth relative to valuation.

📈 Company Positive News

  • Strong quarterly profit growth highlights operational efficiency.
  • Stock remains close to 52-week high, confirming bullish momentum.
  • EPS of 17.8 ₹ supports earnings visibility despite high valuation.

🏭 Industry

  • Industry P/E at 18.7 is far below APL Apollo’s valuation, highlighting premium pricing.
  • Steel and structural products sector benefits from infrastructure expansion and housing demand.

🔎 Conclusion

  • Stock is in a strong uptrend with mild consolidation.
  • RSI near overbought and reduced volumes suggest cautious accumulation.
  • Best strategy: Buy near 2,000–2,050 ₹ with stop-loss below 1,890 ₹.
  • Upside potential towards 2,120–2,151 ₹ if momentum sustains and breakout occurs.

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