APL Apollo Tubes, a producer of structural in India, hit a record high earlier in August 2022, and experts and technical indicators suggest that the upside is still intact.
The stock with a market capitalisation of more than Rs 26,000 crore hit a record high of Rs 1,146 on August 16, 2022, on the BSE. The stock has rallied more than 20 per cent in a month which helped it to climb above 50 and 200-DMA on daily charts.
The supertrend indicator also triggered a buy on 1st August which also strengthen the bullish argument.
is the largest producer of Structural Steel Tubes in India. They have multi-product offerings that include over 1,100 varieties of pre- galvanized tubes and structural steel tubes making APL Apollo is one of the leading branded steel products manufacturers in India, said the company website.
The stock was largely rangebound so far in 2022 but a strong price action seen in the last 30 days suggests that bulls remain firmly in control.
Short to medium-term traders can look to buy the stock now or on dips for a target of Rs 1,700-2,000 which translates into an upside of over 50 per cent from Rs 1,077 recorded on 17 August, 2022.
The stock made a strong bullish candle last week which helped the stock to scale a fresh record high and also climb above the 50-WMA on the weekly charts.
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On the price front, the stock is trading below the 5 and 10-DMA, but above 30, 50, 100 and 200-DMA on the daily charts.
The relative strength index (RSI) is placed at 65.3. RSI below 30 is considered oversold and above 70 is considered overbought. MACD is above its center and signal line, this is a bullish indicator.
The stock price started its upmove from Rs 115 (April 2020) to Rs 1,114 (December 2021), making a series of higher bottoms and higher tops. During the move, the stock continuously traded above the averages and the supertrend was in positive mode.
Thereafter, the stock traded in a range of Rs 750 to Rs 1,000 between September 2021 to July 2022.
“A weekly bullish candle, supported by volumes has been formed and a new high of Rs 1,128 is made by the stock. The PVT, ADX and MACD indicators have generated a primary buy signal,” Bharat Gala, President – Technical Research,
Securities, said.
PVT combines percentage price change and volume to confirm the strength of the trend. MACD suggests upside momentum is increasing.
“The possible targets are Rs 1,700-2,000 in the next 6 months. If the stock price corrects downwards the buy levels are (Rs 1,050-1,005)-965-(926-904). A stop loss to be observed in the trade at 799,” recommends Gala.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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