ICICIdirect recommended 'Buy' on Apollo Tyres with target Rs 212 against market price Rs 174.

Commenting on the investment rationale, the stock broker said, "The share price of Apollo Tyres is seen resolving higher after three weeks of base formation near a key value area, marked by convergence of key technical parameters, indicating resumption of the primary up trend and, therefore, offers fresh entry opportunity from a medium-term perspective. Among oscillators, the displacement of weekly Stochastic oscillator near oversold territory for the first time since October 2013 and sustainability above its three period average highlights positive momentum in the stock from a medium-term perspective. During the current week, the share price has emerged above the last three weeks highs (174) signalling an end of the corrective decline and resumption of the primary up trend."

"Based on the aforementioned technical observations, we believe the stock is set to enter a sustainable uptrend and challenge its all-time highs at Rs 217 providing a favourable reward-risk set up to ride next up leg within larger up trend," it said.

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