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Investors with a short-term perspective can consider taking short positions in the stock of JK Tyre and Industries. The stock fell for the second consecutive day tumbling 4.3 per cent on Tuesday. It is already down 10 per cent for the week. After marking an all-time high of ₹162. 95 last week, the stock is trending lower. Resistances at ₹140 and ₹142 will limit sharp rallies in the stock. JK Tyre also faces a key short-term resistance at ₹148. The outlook for the stock will remain bearish as long as it trades below these resistance levels.
The stock will continue to remain under pressure in the coming sessions and extend its fall. It is likely to test its support at ₹130.5, which is its 21-day moving average. A fall below this support level can drag the stock down to the next targets of ₹126 or even ₹115 thereafter. Traders with a short-term perspective can go short with a stop-loss at ₹141 for the target of ₹132.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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