Tyre stocks have been rising in the past few months, with Apollo Tyres and JK Tyres seeing gains of about 16%. With tyre prices expected to increase, these stocks are attracting investors. Prabhudas Lilladher, a domestic brokerage firm, has recommended three tyre stocks as good buys.
Here are the top picks by Prabhudas Lilladher:
- Apollo Tyres
- Target Price: ₹686
- Stop Loss: ₹500
- Upside Potential: 24.7%
- Analysis: The stock is showing a higher bottom formation pattern, with support near ₹518. The Relative Strength Index (RSI) is favorable, indicating strength for further growth. A breakout above ₹560 could trigger more upward movement.
- Ceat
- Target Price: ₹3,350
- Stop Loss: ₹2,520
- Upside Potential: 23%
- Analysis: The stock has gained momentum, moving past key moving averages (50EMA and 100MA). It shows a higher bottom formation pattern, with the RSI signaling a trend reversal. A breakout above ₹2,940 could lead to further gains.
- JK Tyres
- Target Price: ₹600
- Stop Loss: ₹435
- Upside Potential: 26.5%
- Analysis: The stock has improved its trend, moving past important moving averages (50EMA and 100MA) after picking up from the 200MA at ₹390. The RSI indicates strength, and a breakout above ₹510 could drive further upward movement.
These stocks are seen as strong investment opportunities based on both their technical and fundamental positions.
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