JK Tyre & Industries (₹156.9)

Investors with a short-term horizon can consider buying the stock of JK Tyre & Industries at current levels as the stock is under bullish momentum.

In early February this year, the stock encountered a key resistance at ₹192 and changed direction. Since then, the stock has been in a short-term downtrend. While trending down, the stock breached its key support at ₹170 in February and extended its down-move. Nevertheless, the stock found support at ₹140 last week and did a volte face.

On Tuesday, the stock gained 5.4 per cent with above average volume breaching its immediate resistance at ₹150 and also managed to close above the 200-DMA. The stock has surged 9.4 per cent in the last two trading sessions.

The daily as well as weekly relative strength indices are charting higher in the neutral region towards the bullish zone. The daily price rate of change indicator has entered the positive territory implying buying interest.

Short-term outlook is bullish for the stock. It can continue to move higher and knock the price targets of ₹163.5 and ₹166.5 in the upcoming trading sessions. Buy the stock with a stop-loss at ₹153.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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