With reports of rising tire prices, stocks in this sector are likely to attract the attention of investors who are strongly positioned from a fundamental perspective.Furthermore, considering the technical placement of tire stocks, domestic brokerage Prabhudas Lilladher has listed three attractive buys.
Below is the list of stocks recommended by Prabhudas Lilladher.
Apollo Tyres | Price Target: Rs 686, Stop Loss: Rs 500, Upside Potential: 24.7%. The stock is currently showing a bottom formation pattern with support near the 518 zone on the daily chart, strengthening expectations for further upside. The RSI has settled from the overbought zone, showing strength and is well positioned to continue the positive move in the coming days. A breakout above 560 will confirm a breakout that could trigger further upside.
Ceat | Target Price: Rs 3,350; Stop Loss: Rs 2,520; Upside Potential: 23%
The stock has recently risen above the 50 EMA and 100 period MA, improving the bias and is currently forming a bottom pattern on the daily chart, which is showing strength again and is likely to continue the positive movement. The RSI has settled from the overbought zone, indicating a trend reversal and giving a buy signal, which could lead to a strong upside from the current levels. A move above 2940 would confirm the trendline breakout and trigger further upside.
JK Tyres | Target Price: Rs 600; Stop Loss: Rs 435; Upside Potential: 26.5%
The stock has been climbing nicely from the 390 zone of the crucial 200-period MA and is expected to improve its trend over the coming days as it has crossed the 50EMA and 100-period MA zone. The RSI is showing strength and is likely to see a significant upswing from the current levels. A decisive breakout above the 510 zone will further strengthen the trend and further upside is anticipated.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not represent the views of The Economic Times)
