Technical Picks to Keep an Eye On: Equitas Small Finance Bank and Apollo Tyres

Equitas Small Finance Bank and Apollo Tyres are identified as upside potential stocks based on technical analysis. Both stocks have displayed promising structures and technical setups, including price volume contraction, potential to bounce back and breakout. Currently trading at Rs 99.75 and Rs 488.30 respectively, their price aligns with positive signals from technical indicators like RSI and ADX, suggesting a breakout scenario likely in the coming time.

Equitas Small Finance Bank Ltd 

The daily chart of Equitas Small Finance Bank Ltd

On the daily chart, the Equitas Small Finance Bank is presently showing a promising picture; the stock price is moving up after bouncing from a 50-day EMA. The stock price may resume its strong momentum-up in the coming trading sessions if it manages to cross and close above the upper band of the Bollinger band as plotted on the chart, with the support of decent volume compared to the current volume. Volumes are dry right now and likely to rise soon.

Those considering a possible trade-in Equitas Small Finance Bank might purchase the stock at the current price with a stop loss of Rs 96 on a closing basis and aim to capitalize above Rs 110 and 52-week high.

The stock price is currently trading above its 50-day EMA, suggesting it is likely about to turn short-term bullish once more. The stock appears quite neutral when one looks at the Relative Strength Index, which is now trading at 55.62. The ADX of 19 indicates the present state of price momentum, which is moving with low momentum.

In the event of a retracement, it is essential to monitor key support levels, particularly at Rs 955. The minor upper resistance is Rs 110 and if the stock closes above the 52-week high consecutively, then it may consistently trade above current levels.

Equitas Small Finance Bank Ltd. engages in the provision of micro finance loan services.

Apollo Tyres Ltd

The daily chart of Apollo Tyres Ltd

Apollo Tyres Ltd’s current performance is indicated by a favorable technical setup. The company’s shares are now trading at Rs 488.30 and may continue the uptrend from the current level. The stock price is currently trading slightly above the 50-day EMA.

Those interested in possible trade-in Apollo Tyres could purchase the stock at the present price, setting a stop loss below the 50-day EMA at Rs 470, and aim for a target price higher than the level of Rs 540.

The stock is trading above its all-important moving averages, and it is expected to find support near Rs 455. The Relative Strength Index is trading near neutral levels at 54.67. This implies there may be potential for an increase in stock price strength. The ADX, now around 26, shows normal momentum and directional strength.

The level at Rs 455 serves as a crucial indicator for corrective movement, and the overall market structure favors traders if the stock crosses the level of Rs 500 and trades above it.

Apollo Tyres Ltd. engages in the production and trading of automotive tyres, tubes and flaps.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.