Technical Trend Overview and Price Movement
The stock closed at ₹462.25 on 20 Feb 2026, down 2.75% from the previous close of ₹475.30. Intraday, it fluctuated between ₹460.10 and ₹482.05, remaining well below its 52-week high of ₹540.30 but comfortably above the 52-week low of ₹368.00. This price action underscores a cautious market sentiment amid broader sectoral pressures.
The technical trend has shifted from a neutral sideways pattern to a mildly bearish one, signalling increased selling pressure. This is corroborated by the weekly and monthly MACD indicators, both registering mildly bearish signals, indicating that the momentum is waning on a medium to longer-term basis. The Bollinger Bands also reflect bearishness on weekly and monthly charts, suggesting that the stock price is trending towards the lower band, a sign of potential downward volatility.
Momentum Indicators: MACD, RSI, and KST
The Moving Average Convergence Divergence (MACD) on weekly and monthly timeframes has deteriorated to mildly bearish levels. This suggests that the short-term moving average is crossing below the longer-term average, a classic sign of weakening momentum. Meanwhile, the Relative Strength Index (RSI) remains neutral on both weekly and monthly charts, indicating no immediate overbought or oversold conditions. This lack of RSI signal implies that while momentum is declining, the stock is not yet in an extreme zone that might prompt a sharp reversal.
The Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures, also aligns with the mildly bearish outlook on weekly and monthly charts. This further confirms the deceleration in price momentum and supports the view that the stock may face continued pressure in the near term.
Moving Averages and Volume Analysis
On a daily basis, moving averages present a mildly bullish signal, suggesting some short-term support around key average levels. However, this bullishness is tempered by the broader weekly and monthly bearish signals, indicating that any short-term rallies may be limited or temporary.
Volume-based indicators provide a mixed picture. The On-Balance Volume (OBV) is mildly bearish on the weekly chart but bullish on the monthly chart. This divergence suggests that while recent trading sessions have seen selling pressure, longer-term accumulation may still be occurring, possibly by institutional investors or value buyers.
Dow Theory and Broader Market Context
Dow Theory assessments on weekly and monthly timeframes also point to a mildly bearish trend. This theory, which analyses the confirmation of trends across different market indices, indicates that the stock is likely to face resistance in sustaining upward momentum. This aligns with the stock’s underperformance relative to the broader market benchmarks in the short term.
Comparing Apollo Tyres’ returns with the Sensex reveals a mixed performance. Over the past week and month, Apollo Tyres has underperformed significantly, with returns of -7.32% and -9.41% respectively, compared to Sensex’s -1.41% and -0.90%. Year-to-date, the stock is down 7.48%, while the Sensex has declined by 3.19%. However, over longer horizons, Apollo Tyres has outperformed the benchmark, delivering 12.10% over one year, 39.65% over three years, and an impressive 94.22% over five years, underscoring its resilience and growth potential despite recent setbacks.
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Mojo Score and Grade Implications
Apollo Tyres currently holds a Mojo Score of 61.0, reflecting a moderate technical and fundamental standing. The recent downgrade from a Buy to a Hold grade on 18 Feb 2026 signals a more cautious stance by analysts, driven primarily by the shift in technical indicators and short-term price momentum. The Market Cap Grade remains at 3, indicating a mid-tier market capitalisation relative to peers in the Tyres & Rubber Products sector.
This downgrade suggests that investors should temper expectations for immediate gains and consider the stock’s current risk profile carefully. While the long-term fundamentals remain intact, the technical signals advise prudence amid potential volatility.
Sectoral and Industry Context
The Tyres & Rubber Products sector has faced headwinds recently, including raw material cost pressures and fluctuating demand in key markets. Apollo Tyres, as a prominent industry player, is not immune to these challenges. The mildly bearish technical signals reflect broader sectoral uncertainties, which may continue to weigh on the stock’s near-term performance.
Investors should monitor sectoral developments closely, as any improvement in commodity prices or demand recovery could provide a catalyst for a technical rebound.
Outlook and Investor Considerations
Given the current mildly bearish technical trend and mixed momentum indicators, Apollo Tyres appears to be in a consolidation phase with downside risks in the short term. The absence of RSI extremes suggests that the stock is not yet oversold, implying that further declines cannot be ruled out before a potential recovery.
Long-term investors may view recent weakness as an opportunity to accumulate, given the stock’s strong multi-year returns and market position. However, traders and short-term investors should exercise caution and watch for confirmation of trend reversals through improved MACD readings or a break above key moving averages.
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Summary
Apollo Tyres Ltd. is currently navigating a technical transition marked by mildly bearish momentum across key indicators such as MACD, Bollinger Bands, and Dow Theory signals. While daily moving averages offer some short-term bullish support, the broader weekly and monthly charts caution investors about potential downside risks. The stock’s recent underperformance relative to the Sensex and sectoral challenges further reinforce the need for a measured approach.
With a Mojo Grade now at Hold and a score of 61.0, investors should weigh the stock’s strong long-term returns against the current technical headwinds. Monitoring volume trends and momentum indicators will be crucial in identifying a sustainable reversal. For those invested in Apollo Tyres, staying informed on sector developments and technical signals will be key to navigating the evolving market landscape.
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