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The stock of JK Tyre & Industries rose 8.5 per cent with good volume on Thursday. This rally has strengthened the medium-term uptrend that has been in place since the stock took support at around ₹99 in March 2021. Also, the recent rally provides investors with a short-term perspective an opportunity to buy the stock at current levels. The key medium-term support in the band between ₹135 and ₹140 had consistently provided base for the stock from June this year till recent times. After taking support from this base band, the stock continued to trend upward recently. It has emphatically breached the 21- and 50-day moving averages and trades well above them. There has been an increase in volume over the past two weeks.
The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone. The stock has potential to surpass the immediate resistance at ₹160 and extend the uptrend in the coming trading sessions. Short-term targets are ₹164 and ₹167. Traders with a short-term view can buy the stock with a stop-loss at ₹154 levels.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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