Buy Apollo Tyres: Sanjay Vaid

Buy Apollo Tyres, says Sanjay Vaid of SBI Capital Securities.

Vaid told CNBC-TV18, "Apollo Tyres has seen more than 62.8% retracement of this February to July 2011 up move and has consolidated between Rs 50-59 for quite some time. The stock has given a decent breakout now. On the F&O front the open interest (OI) has gone up by almost 6% backed by increase in cost of carrying. It clearly implies that the long interest is generated in the stock."
He further added, "We have seen huge surge in delivery volumes and traded volumes are also in the stocks and the cash market. Therefore, we expect that the stock can go towards a level of Rs 63 in medium-short term. Therefore we are recommending a buy in Apollo Tyres with a target of Rs 63 and stop loss of Rs 57.50."