Apollo tires (€532.50)
At the top of a range
Apollo Tires stock spiked in February after facing a barrier of ₹555. Since then, it has mostly traded in the wide range of ₹465-555, barring a brief move to a high of ₹584.65 in September. So to get any certainty about the next big price swing, we have to wait until the stock moves out of range.
That said, the chances of a downturn are high and the risk-reward ratio is good for short positions as the price is currently trading near the top of the range. So, traders can short Apollo bonds at a value of ₹535 with a stop-loss of ₹565. When the stock falls to ₹500, change the stop-loss to ₹520. If it falls to ₹480, tighten the stop -loss to ₹500. Liquidate the shorts for ₹465.
Petronet LNG (€336.40)
Facing a strong barrier
The Petronet LNG stock price saw a sharp price increase between October 2023 and July 2024 – it almost doubled from ₹195 to a high of ₹384.90. But since then the price has moderated. In an attempt to reverse the upward trend, the stock recovered in the second half of last month. However, the resistance at ₹345 halted the rise.
The scrip is also facing a trendline barrier of ₹340. So, the chances of the stock witnessing another downtrend from here, possibly up to ₹300, are high. Go short at ₹338 with a stop-loss at ₹350. When the price falls to ₹325, follow the stop-loss to ₹340. Lower the stop-loss to ₹325 when the stock falls to ₹315. Book profit from ₹300.
Radico Khaitan (€ 2,483.85)
Confirms a triangle pattern
Radico Khaitan stock is in a long-term uptrend with periodic corrective phases in the form of a small decline or a sideways crawl. A similar correction, but in the form of an ascending triangle, has been observed over the past two months. Last week, it broke out of the resistance at ₹2,465, confirming the pattern.
Therefore, we expect the stock to rise, and the triangle pattern indicates a rally to ₹2,730. Go long Radico Khaitan now at ₹2,483 and buy more shares when the price falls to ₹2,440. Maintain a stop-loss of ₹2,360. When the price rises to ₹2,620, change the stop-loss to ₹2,480. Move the stop-loss further to ₹2600 when the price reaches ₹2680. Exit at ₹2,730.
