Apollo Tyres Ltd. Technical Momentum Shifts to Sideways Amid Mixed Indicators

Technical Trend Overview and Price Movement

The stock of Apollo Tyres Ltd., currently priced at ₹482.65, has seen a modest decline of 1.04% from the previous close of ₹487.70 on 3 Feb 2026. The intraday range was relatively narrow, with a low of ₹475.00 and a high of ₹487.80, indicating limited volatility. Over the past week, the stock has underperformed the Sensex, registering a 3.51% decline compared to the benchmark’s 0.16% gain. However, on a longer-term horizon, Apollo Tyres has outpaced the Sensex with a 13.11% return over the past year versus the Sensex’s 5.37%, and an impressive 112.25% gain over five years compared to the Sensex’s 64.00%.

The 52-week price range of ₹368.00 to ₹540.30 highlights the stock’s considerable volatility and potential for upside, though recent price action suggests a pause in upward momentum. The technical trend has shifted from mildly bullish to sideways, signalling a phase of consolidation where neither buyers nor sellers dominate decisively.

MACD and Momentum Indicators Signal Caution

The Moving Average Convergence Divergence (MACD) indicator, a key momentum oscillator, presents a mildly bearish outlook on both weekly and monthly timeframes. This suggests that the recent upward momentum is weakening, and the risk of a correction or sideways movement is increasing. The MACD histogram has contracted, and the signal line is approaching the MACD line from above, indicating a potential bearish crossover if the trend continues.

Complementing this, the Know Sure Thing (KST) indicator also reflects a mildly bearish stance on weekly and monthly charts, reinforcing the notion of waning momentum. The Dow Theory analysis aligns with these findings, showing mildly bearish signals that point to a possible pause or retracement in the stock’s advance.

RSI and Bollinger Bands Indicate Neutral Territory

The Relative Strength Index (RSI) on both weekly and monthly scales currently shows no clear signal, hovering near neutral levels. This absence of overbought or oversold conditions suggests that the stock is neither excessively bought nor sold, consistent with the sideways trend. Similarly, Bollinger Bands on weekly and monthly charts are moving sideways, indicating that price volatility has stabilised and the stock is trading within a defined range.

On the daily timeframe, moving averages maintain a mildly bullish posture, with the short-term averages still positioned above longer-term averages. This suggests that while momentum has slowed, the underlying trend remains cautiously positive in the short term. However, the lack of strong confirmation from other indicators tempers enthusiasm for a sustained rally at this juncture.

Volume and On-Balance Volume (OBV) Analysis

On-Balance Volume (OBV) indicators on weekly and monthly charts show no discernible trend, indicating that volume flow is not strongly favouring either buyers or sellers. This lack of volume confirmation further supports the sideways price action and suggests that market participants are awaiting clearer directional cues before committing decisively.

Mojo Score and Analyst Ratings

Apollo Tyres currently holds a Mojo Score of 55.0, reflecting a Hold rating, downgraded from a Buy on 12 Jan 2026. The Market Cap Grade stands at 3, indicating a mid-tier market capitalisation relative to peers. This downgrade aligns with the technical indicators signalling a pause in momentum and increased uncertainty in the near term.

Investors should note that while the stock’s long-term fundamentals remain robust, the current technical environment advises caution. The sideways trend and mixed signals suggest that a clear breakout or breakdown is needed to confirm the next directional move.

Comparative Performance and Market Context

Despite the recent technical slowdown, Apollo Tyres has demonstrated strong relative performance over extended periods. Its 3-year return of 45.66% surpasses the Sensex’s 36.26%, while the 10-year return of 238.82% slightly edges out the Sensex’s 232.80%. This outperformance underscores the company’s resilience and growth potential within the Tyres & Rubber Products sector.

However, the short-term underperformance relative to the Sensex and the downgrade in technical ratings suggest that investors should monitor the stock closely for signs of renewed momentum or further consolidation. The broader market environment, sector trends, and global commodity prices impacting raw materials for tyre manufacturing will also play critical roles in shaping the stock’s trajectory.

Outlook and Investor Considerations

In summary, Apollo Tyres Ltd. is currently navigating a technical inflection point. The shift from a mildly bullish to a sideways trend, combined with mildly bearish MACD and KST indicators, points to a period of consolidation. The neutral RSI and Bollinger Bands reinforce this view, indicating a lack of strong directional bias.

Investors should weigh these technical signals alongside fundamental factors and sector dynamics. The Hold rating and Mojo Score of 55.0 reflect a cautious stance, suggesting that while the stock remains a viable holding, fresh catalysts are needed to reignite upward momentum.

Monitoring key support levels near ₹475 and resistance around ₹490-₹495 will be crucial in the coming weeks. A decisive break above resistance could signal a resumption of the bullish trend, while a drop below support might indicate further downside risk.

Given the mixed technical landscape, a balanced approach combining technical analysis with fundamental research is advisable for those considering exposure to Apollo Tyres at this juncture.

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