With reports of rising tire prices, stocks in this sector could be on investors’ radars, with strong fundamental positioning. Also, considering the technical positioning of tire stocks, domestic brokerage Prabhudas Lilladher has listed three attractive stocks to buy.
Here is a list of stocks recommended by Prabhudas Lilladher:
Apollo Tyres | Target Price: 686 INR; Stop Loss: 500 INR; Upside Potential: 24.7% The stock is currently showing a higher bottoming pattern on the daily chart and is supported near the 518 zone, improving the bias to expect further upside. RSI has cooled down from the overbought zone, indicating strength and is well positioned to continue the positive move ahead. Above 560, a breakout is confirmed to trigger further upside movement.
Ceat | Target Price: 3,350 rupees; Stop Loss: 2,520 rupees; Upside Potential: 23%
The stock has recently broken above the 50EMA and 100-period MA to improve the bias and has shown the strength to continue the positive move further with a higher bottom formation pattern on the daily chart. The RSI has cooled off from the overbought zone and is well positioned to signal a trend reversal, sending a buy signal, and there is a lot of upside potential from current levels. Above 2940, a trendline breakout will be confirmed for further upside.
JK Tyres | Target Price: Rs 600; Stop Loss: Rs 435; Upside Potential: 26.5%
The stock has moved significantly above the important 200 period MA at the 390 zone and is trending higher as it crosses the 50EMA and 100 period MA zones, which should lead to further upside in the coming days. The RSI is showing strength and there is a lot of upside potential from current levels. A decisive break above the 510 zone could further strengthen the trend and see further upside moves.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not necessarily represent the views of The Economic Times)
