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Investors with a short-term horizon can buy JK Paper at current levels. Following a corrective medium-term downtrend, the stock took support at ₹86 in November 2020. In early January , the stock had decisively breached a key medium-term resistance in the band between ₹107 and ₹110 and continued to trend upwards. After a near-term correction, the stock found support at ₹150 recently.
On Monday, the stock bounced up from this base level by gaining 4.5 per cent accompanied by above average volume. Moreover, the stock trades well above the 21- and 50-day moving averages. The daily relative strength index has re-entered the bullish zone and the weekly RSI continues to hover in the bullish zone. Both the daily and the weekly price rate of change indicators are featuring in the positive territory.
Overall, the short-term outlook is bullish for JK Paper. It can continue to trend upwards and reach the price targets of ₹164.5 and ₹168. Traders can buy the stock with a stop-loss at ₹154.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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