The uptrend in the stock of JK Tyre and Industries has gained momentum after the strong 8 per cent rally on Tuesday. This has broken the bull channel that was in place since July, on the upside. Immediate resistance at ₹167. But a pull-back from there can be limited to the ₹156-₹155 support zone. Below this, ₹146 is the next important support. We expect the stock to break above ₹167 eventually and rise to ₹200-₹210 over the next one month. Traders can go long at current levels and accumulate at ₹155. Keep the stop-loss at ₹143. Move the stop-loss up to ₹153 once the stock rises to ₹166. Move the stop-loss further up to ₹166 when the stock touches ₹175. Book profits at ₹185.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)