MRF, CEAT, JK Tyre: Should you bet on tyre stocks? Here's what charts say

JK Tyre was trading over 8 per cent higher after the company reported a strong operational performance for the September quarter.

Tyre stocks were in a roll in an otherwise weak market on Thursday. While CEAT traded around 1 per cent higher, Goodyear India was up nearly 0.5 per cent. JK Tyre, on the other hand, was ruling around 8 per cent higher after the company reported a strong operational performance for the quarter ended September 30. READ MORE

So, are the gains in tyre stocks sustainable? Take a look at what charts indicate.

CEAT Limited (CEATLTD): The overall trend has turned highly bullish with a “Golden Cross” formation of 50-day moving average (DMA), and 100-DMA with 200-DMA. This reflects a rally towards Rs 1,215 levels, which is its 200-weekly moving average (WMA). A horizontal trendline breakout above Rs 980 levels has also affirmed the upside move. The immediate support comes in at Rs 1,000 levels. And if the stock manages to sustain above Rs 1,050 levels for a few more sessions, then a quick upside may be possible towards Rs 1,150 mark. CLICK HERE FOR THE CHART

 
JK Tyre & Industries Limited (JKTYRE): The counter has witnessed continuous resistance of 200-DMA since August 2020, currently placed at Rs 60 levels. This may get conquered if the stock price manages to sustain above today's gap-up opening. If this sustains, the price may rally towards the direction of Rs 70, which is its next resistance level. The Moving Average Convergence Divergence (MACD) has crossed the zero line upward. This illustrates a positive momentum.  CLICK HERE FOR THE CHART
  
Goodyear India Limited (GOODYEAR): The overall trend is sluggish and may turn into a negative sentiment if the price fails to show a reversal. In recent sessions, the stock has breached the support of Rs 940 and Rs 890 levels. The current price is trading below 200-DMA. This signals a bearish sentiment on the stock. Going forward, if the price continues to show weakness, then it may slide to Rs 650 in the near term. CLICK HERE FOR THE CHART
 
MRF Limited (MRF): This counter is set to breakout on “Inverse Head and Shoulder” pattern if it manages to close above Rs 62,000, which is its 200-DMA as well. The MACD has crossed the zero line suggesting a positive bias. This breakout may see Rs 64,000 and Rs 67,000 in the near future. A closing basis support stays at Rs 60,500 levels, as per the daily chart. CLICK HERE FOR THE CHART