Initiated a long position in APLAPOLLO following a high-conviction breakout from a multi-month Volatility Contraction Pattern (VCP). Although the price is currently extended from the 20- and 50-day EMAs, the structural strength of the breakout suggests the beginning of a fresh leg in the uptrend.
From a fundamentals perspective, the company continues to deliver strong and consistent sales and EPS growth, reinforcing its positioning as a proxy for India’s infrastructure-led growth cycle.
To manage the risk associated with being extended from the moving averages, I’ve opted for a wider stop-loss, allowing room for short-term volatility or a potential retest of the breakout zone. This approach gives the trade sufficient breathing space while the moving averages gradually catch up to price.
From a broader market standpoint, the recent ~10% correction in ITC following the government’s cigarette tax announcement has created temporary index-level pressure on the Nifty 50. However, this has triggered a clear sectoral rotation rather than broad-based weakness. Capital is rotating out of regulatory-impacted FMCG names and into high-growth industrial leaders like APL Apollo.
Given its insulation from regulatory shocks and its direct linkage to domestic capex growth, APL Apollo is exhibiting strong relative strength even as the broader market remains range-bound.
Initiated the position with 1% risk.
📢📢📢
Disclaimer : The analysis shared here is for informational purposes only and should not be considered as financial advice. Trading in all markets carries inherent risks, and past performance is not indicative of future results. It’s essential to conduct your own research and assess your risk tolerance before making any investment decisions. The views expressed in this analysis are solely mine. It’s important to note that I am not a SEBI registered analyst, so the analysis provided does not constitute formal investment advice under SEBI regulations.
From a fundamentals perspective, the company continues to deliver strong and consistent sales and EPS growth, reinforcing its positioning as a proxy for India’s infrastructure-led growth cycle.
To manage the risk associated with being extended from the moving averages, I’ve opted for a wider stop-loss, allowing room for short-term volatility or a potential retest of the breakout zone. This approach gives the trade sufficient breathing space while the moving averages gradually catch up to price.
From a broader market standpoint, the recent ~10% correction in ITC following the government’s cigarette tax announcement has created temporary index-level pressure on the Nifty 50. However, this has triggered a clear sectoral rotation rather than broad-based weakness. Capital is rotating out of regulatory-impacted FMCG names and into high-growth industrial leaders like APL Apollo.
Given its insulation from regulatory shocks and its direct linkage to domestic capex growth, APL Apollo is exhibiting strong relative strength even as the broader market remains range-bound.
Initiated the position with 1% risk.
📢📢📢
If my perspective changes or if I gather additional fundamental data that influences my views, I will provide updates accordingly.
Thank you for following along with this journey, and I remain committed to sharing insights and updates as my trading strategy evolves. As always, please feel free to reach out with any questions or comments.
Other posts related to this particular position and scrip, if any, will be attached underneath. Do check those out too.
Disclaimer : The analysis shared here is for informational purposes only and should not be considered as financial advice. Trading in all markets carries inherent risks, and past performance is not indicative of future results. It’s essential to conduct your own research and assess your risk tolerance before making any investment decisions. The views expressed in this analysis are solely mine. It’s important to note that I am not a SEBI registered analyst, so the analysis provided does not constitute formal investment advice under SEBI regulations.
Note
For APL Apollo, the Venezuela Shock creates a secondary impact: rising energy and diesel prices can inflate freight and logistics costs, while global uncertainty often leads FIIs to trim growth-oriented mid-caps in favor of safe havens like gold. However, the company’s dominant domestic pricing power and the steady demand from Indian infrastructure projects act as a natural shield against this external geopolitical noise.Trade active
With the broader market showing a bearish bias, I’ve protected my capital by moving my stop loss to break-even, effectively locking in profits.
Instead of exiting, I’ve decided to stay invested in APL Apollo Tubes Limited as the stock continues to show strong relative strength. The recent Q3 FY26 results were encouraging, with record performance and improved forward guidance from management. While the Nifty remains under pressure, APL Apollo hitting a fresh 52-week high reflects clear momentum. This makes it a low-risk, “free trade” that I’m comfortable letting run for now.
Trade closed manually
Closed this position manually yesterday, booking a profit of around 0.3% of net capital. After the budget-related crash triggered by the hike in STT, I expected broader bearish sentiment to set in. So I chose to exit my swing positions and step aside for now.
Note
Additionally, I closed my Bharat Electronics Limited trade at a small loss. Together, both exits balanced out, leaving the net result at breakeven.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.