Technical Analysis: Apollo Tyres, Petronet LNG And Radico Khaitan

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Apollo Tyres (₹532.50)

At the top of a range

The stock of Apollo Tyres peaked in February after it faced a barrier at ₹555. Since then, it has largely been trading in the broad range of ₹465-555, except for a brief move to mark a high of ₹584.65 in September. So, for us to get some certainty over the next major swing in price, we need to wait until the stock gets out of the range.

That said, since it is currently trading near the top of the range, the probability for a fall is high and the risk-reward ratio is good for short positions. So, traders can short Apollo Tyres at ₹535 with a stop-loss at ₹565. When the stock slips to ₹500, alter the stop-loss to ₹520. On a fall to ₹480, tighten the stop-loss to ₹500. Liquidate the shorts at ₹465.

Petronet LNG (₹336.40)

Facing a strong barrier

The stock of Petronet LNG saw a sharp rise in price between October 2023 and July 2024 – it nearly doubled from ₹195 to hit a high of ₹384.90. But since then, the price has been moderating. In an attempt to reverse the trend up, the stock rebounded in the second half of last month. However, the resistance at ₹345 capped the rise.

The scrip also faces a trendline barrier at ₹340. So, the likelihood of the stock to witness a fresh leg of downtrend from here, possibly to ₹300, is high. Go short at ₹338 with a stop-loss at ₹350. When the price moderates to ₹325, trail the stop-loss to ₹340. Tighten the stop-loss to ₹325 when the stock declines to ₹315. Book profits at ₹300.

Radico Khaitan (₹2,483.85)

Confirms a triangle pattern

The stock of Radico Khaitan has been in a long-term uptrend with intermittent corrective phases in the form of a minor decline or a sideways crawl. Similar correction but in the form of an ascending triangle was seen in the last two months. Last week, it broke out of the resistance at ₹2,465, confirming the pattern.

Therefore, we anticipate the stock to appreciate, and the triangle pattern hints at a rally to ₹2,730. Go long on Radico Khaitan now at ₹2,483 and buy more shares if the price dips to ₹2,440. Keep a stop-loss at ₹2,360. When the stock rises to ₹2,620, revise the stop-loss to ₹2,480. Move the stop-loss further up to ₹2,600 when the price touches ₹2,680. Exit at ₹2,730.