Price Movement and Market Context
The stock closed at ₹505.00 on 12 Jan 2026, down 2.93% from the previous close of ₹520.25. Intraday, it traded between ₹503.00 and ₹524.20, remaining below its 52-week high of ₹540.30 but comfortably above the 52-week low of ₹368.00. This price action reflects some short-term profit-taking amid broader positive momentum.
Comparatively, Apollo Tyres has outperformed the Sensex over longer horizons. The stock delivered a 6.32% return over the past year versus the Sensex’s 7.67%, and significantly outpaced the benchmark over three and five years with returns of 54.46% and 162.27% respectively, compared to Sensex’s 37.58% and 71.32%. Over a decade, Apollo Tyres’ 237.23% gain closely matches the Sensex’s 235.19%, underscoring its strong long-term growth trajectory.
Technical Trend Evolution
Recent technical analysis reveals a shift from a bullish to a mildly bullish trend. This subtle change indicates that while the stock retains upward momentum, the strength of the rally has moderated. Investors should note this tempering as a signal to monitor for potential consolidation or correction phases.
The daily moving averages remain mildly bullish, suggesting that short-term price averages continue to support upward movement. However, weekly and monthly indicators present a more complex picture.
MACD and Momentum Indicators
The Moving Average Convergence Divergence (MACD) indicator shows a divergence in timeframes. On a weekly basis, the MACD is mildly bearish, signalling a potential slowdown in momentum or a short-term correction. Conversely, the monthly MACD remains bullish, indicating that the longer-term trend is intact and positive.
This divergence suggests that while short-term momentum may be waning, the broader trend remains constructive, which could provide a foundation for renewed strength once short-term pressures ease.
Relative Strength Index (RSI) Signals
The RSI readings further illustrate this mixed momentum. The weekly RSI currently offers no clear signal, hovering in a neutral zone that neither indicates overbought nor oversold conditions. This neutrality suggests a pause in directional conviction among traders.
In contrast, the monthly RSI is bullish, reinforcing the view that the stock retains underlying strength over a longer horizon. This bullish monthly RSI supports the notion that the stock is not overextended and may have room to appreciate further.
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Bollinger Bands and Volatility
Bollinger Bands on both weekly and monthly charts remain bullish, indicating that price volatility is contained within an upward trending channel. This suggests that despite recent price dips, the stock is trading within expected volatility bounds and has not breached critical support levels.
Such behaviour often precedes a resumption of upward momentum, provided no adverse fundamental changes occur.
Moving Averages and KST Indicator
Daily moving averages continue to show mild bullishness, reflecting short-term support for the stock price. However, the Know Sure Thing (KST) indicator presents a mildly bearish stance on both weekly and monthly timeframes, signalling some caution. The KST’s bearish tone may reflect underlying momentum loss or profit-taking pressures that could temper gains in the near term.
Dow Theory and On-Balance Volume (OBV)
According to Dow Theory, the weekly trend remains mildly bullish, suggesting that the stock’s price movements are still aligned with a positive market phase. However, the monthly Dow Theory reading shows no clear trend, indicating uncertainty in the longer-term directional strength.
On-Balance Volume (OBV) readings are bullish on both weekly and monthly charts, signalling that buying volume is outpacing selling volume. This volume strength supports the price action and suggests accumulation by investors, which is a positive sign for future price appreciation.
Mojo Score Upgrade and Market Capitalisation
Apollo Tyres’ MarketsMOJO score has improved to 72.0, upgrading its mojo grade from Hold to Buy as of 07 Jan 2026. This upgrade reflects enhanced confidence in the stock’s fundamentals and technical outlook. The company holds a market cap grade of 3, indicating a mid-cap status within its sector.
This rating upgrade aligns with the mixed but generally positive technical signals, reinforcing the stock’s appeal to investors seeking growth within the Tyres & Rubber Products sector.
Sector and Industry Context
Operating within the Tyres & Rubber Products industry, Apollo Tyres faces sector-specific challenges such as raw material price volatility and competitive pressures. However, its technical resilience and strong volume trends suggest it is well-positioned relative to peers.
Investors should consider these sector dynamics alongside technical indicators to gauge the stock’s potential trajectory.
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Investor Takeaway and Outlook
In summary, Apollo Tyres Ltd. presents a technically nuanced picture. The recent downgrade from a fully bullish to a mildly bullish trend signals a need for caution, but the longer-term monthly indicators remain constructive. The divergence between weekly and monthly MACD and RSI readings highlights a short-term pause amid sustained longer-term strength.
Volume trends, as indicated by OBV, support the case for accumulation, while Bollinger Bands suggest price volatility remains controlled. The KST and weekly MACD caution investors to watch for potential short-term corrections or consolidation.
Given the MarketsMOJO upgrade to a Buy rating and the company’s strong relative returns over multi-year periods, Apollo Tyres remains an attractive candidate for investors with a medium to long-term horizon. However, short-term traders should monitor technical signals closely for signs of momentum shifts.
Overall, the stock’s technical framework combined with fundamental upgrades and sector positioning suggests a cautiously optimistic outlook, with opportunities for gains balanced by the need for vigilance amid mixed momentum signals.
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