Technical breakout: What should traders do with this largecap tyre stock?

In its recent quarterly results, the company reported 4-fold jump in net profits to Rs 427 crore from Rs 113 crore for the same quarter of previous fiscal.

The shares of Apollo Tyres Ltd (NSE Code - APOLLOTYRE) have soared over 2 per cent on Tuesday, supported by strong volumes. The strong buying interest is aided by good market sentiment as all the benchmark indices have seen positivity during the opening hours of Tuesday’s trading session. Meanwhile, the tyre manufacturer stock has registered a strong technical breakout from its consolidation pattern.  

Technically, the stock trades just below its all-time high levels. All of its moving averages are in a strong uptrend. The 14-day RSI (70.54) lies in super bullish territory and shows strong strength in the stock. The OBV is rising and indicates positive buying sentiment in the stock. The other momentum oscillators also are in align with the bullish bias of the stock. Overall, the bullish technical setup is likely to attract traders for near term.  

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In its recent Quarterly Results, the company reported 4-fold jump in net profits to Rs 427 crore from Rs 113 crore for the same quarter of previous fiscal. Meanwhile, the revenue grew 12 per cent YoY to Rs 6247 crore in March 2023 from Rs 5578 crore in March 2022.  

Currently, the APOLLOTYRE share price has hit the intraday high of Rs 377.70 on NSE and is up 2 per cent. Traders should keep a close watch on this stock for upcoming days.