The stock of JK Tyre & Industries jumped 5 per cent accompanied by extraordinary volume, breaking above a key resistance at ₹78 on Thursday. This rally has strenthened the short-term uptrend and provides an opportunity to buy the stock at current levels for investors with short-term perspective.
In August 2019, the stock took support at ₹55 and changed direction. Since then, it has been in a medium-term uptrend. The stock resumed its uptrend in early December after taking support at ₹70. The stock had decisively breached its 50- and 200-DMAs last week and currently trading well above them.
The daily relative strength index features in the bullish zone and the weekly RSI has just entered the bullish zone from the neutral region. Both the daily as well as the weekly price rate of change indicators are hovering in the positive terrain implying buying interest.
Overall, the short-term outlook is bullish for JK Tyre & Industries. It can extend the uptrend and reach the price targets of ₹86 and ₹87.5 in the forthcoming trading sessions. Traders can buy the stock with a stop-loss at ₹80.5.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
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