JP Associates is looking extremely strong right now and has given a very nice break out around levels of 130. If you remember, JP Associates always used to come from lows of 115 to 130 and then it again dipped down to those levels. However, this time instead of going down, JP Associates has actually made a great upmove of almost 6% today and has come really close to 140 levels.

There is no doubt the fundamentals of the company is extremely good and it is one of the best buys on a long term basis but if I talk about short term, we can definitely see further rallies on the stock. The stock might face some resistance around 140-145 and if it manages to cross those levels, it will definitely cross 150 and might go even higher. The point is that markets are near to all time highs and these are the stocks that have completely underperformed in the market’s rally, so it is more likely for these stocks to start rallying now if the markets were to make new highs. Since the markets are still positive and bound to make all time highs by Diwali, we can see some more strength in stocks like JP Associates.

Buy JP Associates?

I don’t recommend a buy on JP Associates stock for short term, however if your outlook is from a year or two, then one can definitely buy onto the stock on any kind of dips, probably when the markets correct.

Hold JP Associates!

I’m giving a HOLD recommendation for JP Associates. You may see targets of 145 – 150 in this stock in short term. You can maintain a stop loss of around 130 on this stock.

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