Traders take total control over this tyre stock as it runs over 7% on September 6!

JK Tyres and Industries continued its stellar run on September 6, as it soars over 7%.

Despite weak sentiment in the broader market on September 6, the tyre stocks have witnessed fresh interest from the traders. The shares of JK Tyres and Industries have jumped over 7% amid strong buying interest. It has made a stellar run in the past few days, having surged over 22% in less than a month. On the technical chart, it broke out from its double bottom pattern the past week with above-average volume. Today, the volume is found to be greater than the 10-day and 30-day average volume. Overall, the price pattern is quite bullish, considering that the stock is above all of its key moving averages and is inching towards its 52-week high level of Rs 171.70. 

On the monthly timeframe, the MACD has indicated a bullish crossover. On the weekly chart, the 14-period RSI (70.91) is in upper bullish territory. The OBV remains elevated and shows strong strength from the volume’s perspective. The 14-period daily ADX (41.65) shows a strong uptrend and +DMI is also above -DMI. Overall, the stock is technically strong and is expected to trade higher in times to come. 

In the past 3 years, the stock has generated over 150% returns for its investors. The company expects good demand for its product in coming quarters and remains optimistic despite rising raw materials costs. In recent quarterly results, net sales of the company zoomed nearly 40% YoY to Rs 3643 crore. Considering its positive price structure, the stock is expected to see good momentum in the medium term. Traders, as well as long-term investors, can include this stock in their watchlist to track its further development. 

JK Tyre and Industries Ltd is one of India’s foremost tyre manufacturers and is also amongst the top 25 manufacturers in the world. The company has been at the forefront in driving innovation and excellence in the tyre industry through its strong R&D department.