APOLLOTYRE - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.4

📊 Chart Patterns: APOLLOTYRE is trading close to its 50 DMA (508 ₹) and above its 200 DMA (484 ₹), reflecting a mildly bullish undertone despite short-term weakness. Current price (505 ₹) is near support at 500–505 ₹, with resistance around 508–520 ₹ and major resistance at 546 ₹.

📈 Moving Averages: Price above the 200 DMA indicates long-term strength, but hovering near the 50 DMA suggests consolidation.

📉 RSI: At 38.4, RSI is near oversold territory, hinting at potential for a short-term bounce.

📉 MACD: Negative at -2.53, confirming mild bearish momentum in the short term.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (6,79,312) is higher than average weekly volume (5,24,210), showing strong participation near support zones.

📌 Momentum Signals: Short-term bounce possible from 500–505 ₹ support, but trend remains weak unless price sustains above 508–520 ₹.

🎯 Entry Zone: 500–505 ₹ (near support, oversold RSI).

🎯 Exit Zone: 520–546 ₹ (short-term resistance).

🔎 Trend Status: Currently consolidating with mild bearish bias. Reversal requires breakout above 546 ₹.

Positive

• Quarterly PAT improved significantly (279 Cr. vs 223 Cr.).
• DII holdings increased (+0.39%), showing domestic institutional support.
• Dividend yield of 1.03% adds shareholder value.
• EPS of 12.2 ₹ supports earnings base.

Limitation

• High P/E ratio (41.5) compared to industry PE (31.0), indicating premium valuation.
• Weak ROCE (9.80%) and ROE (6.28%) compared to peers.
• FII holdings decreased (-0.37%), showing reduced foreign investor confidence.

Company Negative News

• Stock has corrected from its 52-week high (546 ₹ to 505 ₹).
• Profitability ratios remain weak despite earnings growth.

Company Positive News

• Quarterly profit growth (+66.8%) shows strong operational performance.
• DII holdings increased, reflecting domestic institutional confidence.
• Dividend yield provides steady income support.

Industry

• Industry PE at 31.0 is lower than APOLLOTYRE’s P/E, highlighting premium valuation.
• Automobile and tyre sector outlook remains positive with demand recovery and infrastructure growth.

Conclusion

⚖️ APOLLOTYRE is consolidating near support with weak short-term momentum but strong volume activity. Traders may consider entry around 500–505 ₹ with exit near 520–546 ₹. Long-term investors should monitor valuation risks and wait for sustained breakout above 546 ₹ before accumulation.