Investors with a short-term perspective can buy the stock of JK Tyre & Industries at current levels. Since recording a 52-week low at ₹31.5 in March 2020, the stock has been on an intermediate-term uptrend.
The medium-term trend is also up. After a minor corrective decline in early December 2020, the stock found support at ₹70 and bounced up, resuming the medium-term uptrend.
On Monday, it gained 5.2 per cent, accompanied by above-average volume, breaching a key resistance at ₹79. The stock’s recent rally also surpassed the 21- and 50-day moving averages, and it trades well above these moving averages.
Moreover, the daily relative strength index (RSI) has entered the bullish zone from the neutral region;the weekly RSI has also re-entered the bullish zone. The short-term trend is up.
Besides, the daily as well as the weekly price rate of change indicators are featuring in the positive terrain, implying buying interest. Overall, the short-term outlook is bullish.
The stock has the strength to continue to trend upwards and reach the price targets of ₹84.5 and ₹86.5 in the upcoming trading sessions. Traders with a short-term view can buy the stock with a stop-loss at ₹79.5.
The recommendations are based on technical analysis. There is a risk of loss in trading
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