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Investor with short-term perspective can buy the stock of JK Tyre and Industries at current levels.
Since taking support at around ₹110 in late December 2016, the stock has been on an intermediate-term uptrend. Medium-term trend is also up for the stock. However, after registering a new high of ₹184.7 in early May this year, the stock started to decline witnessing a corrective decline. This corrective decline found support at the long-term base in the band between ₹160 and ₹163 last week. Subsequently, the stock began to resume its medium term uptrend.
On Thursday, the stock jumped 3.3 per cent accompanied with above average volume, strengthening the uptrend. With the bullish momentum picking up, the daily indicators are oscillators have started to chart upwards. While the weekly indicators continue to feature in the bullish zone backing the stock's medium-term uptrend.
The stock trades well above its 50- and 200-day moving averages. With the medium-term up trend-line is intact, the stock can extend its uptrend in the upcoming trading sessions. Traders with a short-term perspective can buy the stock with a stop-loss at ₹167.5. The short-term targets are ₹179 and ₹183 levels. Strong rally beyond ₹183 can take the stock to new high.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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