TYRE STOCKS ANALYSIS 09.10.2024

1) APOLLO TRYES ANALYSIS 09.10.24

Apollo tyres stock has been consolidating since start of 2024, however the stock overall seems to be in an uptrend. Based on current charts, The CMP of stock is at a decent support zone at around ₹507 which makes our Entry 1. In case stock slips down around 10% due to broader market correction, or any other reasons, stock can be averaged out at ₹475 which is acting as a strong support zone. Our target 1 for upside move can be partial exit at ₹557 and 2nd target can be at ₹700.

2) CEAT TRYES ANALYSIS 09.10.24

CEAT has been consolidating since start of 2024 as well. The stock went in an uptrend from May month. After breaking the consolidation zone, the stock seems to be at a retest at ₹3022 which makes our first Entry ie E1. Further if stock slips down, we can make another E2 at ₹2700 in case of stock continues the momentum, we can take a partial exit at ₹3473 as Target 1, and if the stock continues the rally, the Target 2 can be marked at ₹4000. 3) JK TRYE ANALYSIS 09.10.24

JK TYRE has been consolidating since start of 2024 and with current momentum, the swing opportunity seems to be from Entry price at current levels i.e ₹403. Overall momentum of stock is sideways hence that marks our Resistance level i.e target 1 at ₹476. and incase stock continues with rally, we can mark another target i.e final target at ₹510 Incase stock slips down due to any broader reasons, we can average our position at ₹364 as the stock is fundamentally strong. Please note, as disclaimer we have one of these stock as GS swing, if you wish to know the name you can simply join GROWTHSQUAD. But we do not promise any guaranteed returns here and equity investment comes with volatility risk, business risk and industry risk, only if you can handle it, invest in Individual stocks.

MAJOR RISK FACTORS TO CONSIDER BEFORE MAKING NEW POSITION IN ANY TYRE STOCK :

• Increase in oil prices due to middle east war situations may inflate the Raw Material prices for Tyre companies and squeeze their profit margins in coming quarters.

• Signs like high inventory of passenger vehicles and dropped demand for EV cars may indicate a start of long term downcycle in auto companies (usually lasts 1-2 years), this affects tyre stocks due to their high reliance on sales from automobile companies almost 44% of sales comes from there.

• It’s a bit commodity based business i.e the demand cycle is same for majorly all companies except one that operates in commercial sector (jk tyre, Balkrishna). However even these companies are likely to be affected by demand cycle in their respective sectors.

• There is also a ongoing case where top 5 major companies were involved in manipulating (increasing) tyre prices and earn more profits unethically. This case is ongoing with SC since 2018 and any negative results in this case will affect all tyre mentioned above.

Incase ya'll like to share your technical/Fundamental analysis, feel free to drop a mail at contact@growthsquad.in, we will post it here with all due credits. Have a nice day, cheers!

Regards,

Team GROWTHSQUAD

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