APL Apollo Recommended as 'Buy'; IEX and Hero MotoCorp as 'Sell' by Axis Securities
Nifty Outlook and Tactical Stock Calls 📢
Axis Securities has maintained a cautious outlook for the **Nifty 50** index, expecting a **weak trend** this week following a significant decline in the prior trading period. The index closed recently around **25,022.90**, with analysts setting a broad trading range between **25,600** on the upside and **24,600** as key support.
**Bearish Market Signals**
The technical indicators suggest a continued **bearish momentum**. The Nifty saw a **2.5%** loss last week, and the weekly **Relative Strength Index (RSI)** is trending lower, validating the negative bias. The broader market remains influenced by mixed global and domestic cues, with a notable divergence as the **Nifty IT** sector shows strength, while **Bank Nifty** remains under pressure due to lingering concerns in the banking space.
Axis Securities is strategically recommending specific stock actions to navigate this environment.
**Buy Recommendation: APL Apollo Tubes**
The firm recommends a **Buy** on **APL Apollo Tubes**, a leading player in the Iron and Steel Products sector, with a target upside of **10% to 12%**.
This bullish call is based on a decisive technical breakout. The stock recently formed a **rounded bottom pattern** and successfully broke above the **₹1,945** level, signaling the start of a potential medium-term uptrend. The stock is currently hitting new **52-week highs**, reflecting strong technical momentum and sustained investor confidence. On January 27, 2026, the stock recorded a fresh **52-week high of ₹2,087.9**. Consensus estimates see an average price target around **₹2,638**, suggesting considerable long-term upside.
**Sell Recommendation: Indian Energy Exchange (IEX)**
Axis Securities advises a **Sell** on **Indian Energy Exchange (IEX)**, anticipating a downside of **12% to 19%**.
The recommendation is rooted in strong technical weakness. IEX has been in a clear **downtrend** since June 2025, with recent counter-trend moves failing to reverse the dominant direction. Momentum indicators reinforce this weakness, as the weekly **RSI** has broken below its upward-sloping trendline. IEX's recent closing price was around **₹127.53**, and it recently made a new **52-week low**. The stock continues to see pressure despite its strong fundamental positioning with an approximate **85% market share** in the Indian electricity exchange space.
**Sell Recommendation: Hero MotoCorp**
A second **Sell** call is issued for **Hero MotoCorp**, the two-wheeler giant, also based on bearish technical signals.
The stock closed the previous week with a **4.28%** loss, and the outlook for the current week remains negative. Key technical support for Hero MotoCorp is placed around **₹5,219.67**. While the company enjoys strong market fundamentals—with analysts forecasting earnings and revenue growth of over **7%** and **8%** per annum respectively—the near-term technical setup points towards further price correction. The stock is trading significantly below key resistance levels, confirming the immediate bearish bias.