Investors with a short-term horizon can sell the stock of JK Tyre & Industries at current levels. After registering a new high at Rs.162.9 in December 2014, the stock reversed direction. Since then, the stock has been on an intermediate-term downtrend. The presence of significant resistance at Rs.130 kept the stock on check from further rally in early April. The stock subsequently, resumed its downtrend and has been on a short-term downtrend.
On Wednesday, the stock emphatically breached a key support at Rs.105 by plunging 5.4 per cent with above average volume. The relative strength index on the daily chart feature in the bearish zone. The daily price rate of change indicator hovers in the negative territory implying selling interest. The short-term outlook is bearish. The stock can continue to trend downwards and reach the price target of Rs.95.5 and then to Rs.93.5 in the forthcoming sessions. Sell the stock with a stop-loss at Rs.102 levels.
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