Exit Apollo Tyres on rallies, says Bhambwani

Excerpts from Your Stocks on CNBC-TV18 Watch the full show » RELATED NEWS Apollo Tyres mulls expansion of Dunlop S Africa facility ALSO READ See previous views by Vijay Bhambwani See what other Experts & Brokerages are saying about Apollo Tyres See messages about Apollo Tyres Apollo Tyres BSE | NSE 13/02/12 Are Mutual Funds betting on Apollo Tyres?

Technical Analyst, Vijay Bhambwani is of the opinion that one can exit Apollo Tyres on rallies.

Bhambwani told CNBC-TV18, "Apollo Tyres is stuck in a range. The absolute support is Rs 300 levels and resistance would come at Rs 380-390 levels. I would suggest exiting on rallies because if the investors have a quarter in terms of timeframe and patience, which is limited, this stock is unlikely to give you any sizeable return in that timeframe."
 
He further added, "Rubber prices have a deep impact on the stock price like Arvind Mills, which moves in tandem with kapas (seed-cotton) prices on the exchanges. Apollo Tyre can be somewhat predictable in terms of rubber prices on the exchanges and right now rubber prices are showing signs of easing, so you are seeing some buoyancy on Apollo Tyre. But I doubt if it will go beyond Rs 370-380 in the short period of time. So as and when you see Rs 10-20 upmove from here I would suggest exiting from the counter. If you take last five-year history of this stock this is not manage to outperform the Indices at all at best it's a market performer. So one better off putting his/her money in the Nifty rather than putting your money in an individual stock where your risk is concentrated higher. I would say exit on rallies."