Stocks to Buy – auto ancillary shares – JK Tyre, Apollo Tyres – for BIG GAINS; analyst puts BUY recommendation for these price targets

Stocks in News – JK Tyre & Industries Limited, Apollo Tyres Limited – Investors looking to invest in auto ancillary stocks can look to invest in these two tyre stocks for high returns, Analyst Nilesh Jain, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking, said. He was bullish on these two stocks and cites these reasons for his optimism.  

Stocks to Buy - JK Tyre share – The stocks of JK Tyre were trading at Rs 155.60 on the NSE on Tuesday at 1:45 pm, up by 3.4 per cent from the Monday closing price. The technical analyst said that the stock has seen a sideways consolidation and is now emerging out of it. He puts a short-term target price between Rs 165 and Rs 170. On a positional term basis, the target price is at Rs 180, Jain said.  

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He puts the stop loss at Rs 150. Over 13 lakh shares were trading on the NSE around this time while the total market cap was over Rs 3831 cr.  

The 52-week high for this stock is Rs 166.25 which the stock hit on 6 August 2021 while the 52-week low for this stock is Rs 54.60 which it hit on 25 September 2020. The stock has moved both ways over the last 5-6 trading sessions.   

Stocks in News – Apollo Tyres share – The Apollo Tyres share price were trading at Rs 219.60 on the NSE around this time, up by almost 2.2 per cent. On technical charts, the stock is looking stronger, Jain said adding that it is on a verge of a breakout from the symmetrical triangle pattern. The Apollo Tyres stocks have been moving in a rangebound manner.  

The breakout level is Rs 228, he said. He puts a positional target price at Rs 250 and a stop loss at Rs 205. Buy on decline is recommended. The investors can make a move at current levels as well, he further said. 

The 52-week high for this stock is Rs 261.25 which it achieved on 4 March 2021. The 52-week low of this stock is Rs 113.55 25 September 2020.