"The scrip is currently facing a resistance at Rs 170 levels and support level at Rs 129. We have a buy recommendation for JK Tyre with target at Rs 156," says Dinesh Rohira, Founder & CEO at 5nance.com.
JK TyreÂ & Industries made a sharp fall from its 52-week high which was registered a few months ago and continued to consolidate near Rs 143 levels which formed a strong support zone for the stock.
Last week it made an unusual breakout from its 100-days EMA level despite a weak market conviction, and a strong volume breakout indicating a positive trajectory.
On the daily price chart, the scrip made a solid bullish candlestick pattern coupled with reversal trend on its long-term chart. The RSI indicator at 44 levels also moved higher after trading near oversold zone indicating positive divergence coupled with the positive trend on its MACD.
The scrip is currently facing a resistance at Rs 170 levels and support level at Rs 129. We have aÂ buy recommendation for JK TyreÂ with target at Rs 156.