Short Apollo Tyres, says Sudarshan Sukhani

Short Apollo Tyres, says Sudarshan Sukhani of s2analytics.com.

Sukhani told CNBC-TV18, "Apollo Tyres has been a disappointment. A lot of the midcap stocks that we thought would continue and maintain their rally have now come about on the downside and that is exactly what happened to Apollo. It went to Rs 90. The sense was that the next target would be Rs 100. It stopped there. It could easily have been a consolidation prior to another upmove, but that was not to be."
He further added, "It started a decline. It has broken from a support level that tells us that at least in the short-term what was happening at the top was distribution. So, lower levels are likely before we can see another minor or macro base building. It is a short sell. For those who are uncomfortable selling short, just stay away."
The share touched its 52-week high Rs 102.45 and 52-week low Rs 65.65 on 14 September, 2012 and 23 January, 2012, respectively. Currently, it is trading 16.74% below its 52-week high and 29.93% above its 52-week low. Market capitalisation stands at Rs 4,299.33 crore.