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Investors with a short-term perspective can consider buying the stock of JK Tyre & Industries at current levels. The stock gained 4.4 per cent with an extraordinary volume breaching an immediate resistance level of ₹150 on Tuesday. The increase in volume was 2.5 times more than the two week average volume.
Following a medium-term downtrend from the 52-week high of ₹186 recorded in early June this year, the stock found support at ₹140 in late August. The stock’s 200-DMA cushioned the decline. Thereafter, the stock moved sideways with positive bias. The daily relative strength index is charting higher in the neutral region towards the bullish zone.
The weekly RSI is also moving higher in the neutral region. The intermediate-term uptrend that has been in place since December 2016 is still intact. The daily price rate of change indicator is featuring in the positive territory indicating buying interest.
The short-term outlook is bullish for the stock. It can sustain the bullish momentum and reach the price targets of ₹160 and ₹163.5 in the short term. Traders can buy the stock with a stop-loss at ₹150.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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