JKTYRE - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.8

📊 JK Tyre & Industries Ltd (JKTYRE) Swing Trade Analysis

JKTYRE shows potential for a short-term bounce, but the setup is not ideal for aggressive swing trading due to mixed technicals and weakening fundamentals.

✅ Strengths

Reasonable Valuation: P/E of 18.2 is well below the industry average of 33.9, and PEG ratio of 0.49 suggests undervaluation.

Improving Institutional Sentiment: FII and DII holdings have increased slightly.

Dividend Yield: At 0.87%, it's modest but better than peers.

MACD Near Reversal Zone: Though currently negative, it’s approaching a potential crossover.

⚠️ Weaknesses

Bearish Momentum: RSI at 37.8 indicates oversold territory, but also reflects weak price action.

Below Key Averages: Current price ₹344 is below both 50 DMA (₹355) and 200 DMA (₹352), suggesting bearish trend.

Volume Decline: Current volume is below 1-week average, indicating reduced trading interest.

High Debt: Debt-to-equity ratio of 1.01 is on the higher side.

Quarterly Profit Drop: PAT fell 46.9% QoQ, signaling earnings pressure.

🎯 Optimal Entry Price

Entry Zone: ₹335–₹340

This range is near recent support and offers a good risk-reward setup if bullish reversal signals appear.

RSI suggests a bounce is possible from oversold levels.

🚪 Exit Strategy (If Already Holding)

Short-Term Target: ₹360–₹370

This aligns with resistance near 50 DMA and psychological round numbers.

Stop Loss: ₹330

Protect against further downside if bearish momentum continues.

Would you like to compare JKTYRE with other tyre stocks like MRF or CEAT for better swing setups?

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