Tata Group Stock: Titan Shows Bearish Trend

Indian benchmark indices are poised to open lower due to reports of fresh conflict in the Middle East, dampening market sentiment.

Titan Company Limited

Titan Company Limited (Titan), previously known as Titan Industries Limited, was established in 1984 as a joint venture between the Tata Group and Tamil Nadu Industrial Development Corporation Limited (TIDCO). Titan holds a dominant position in the domestic branded jewellery industry with brands like Tanishq, Zoya, Mia, and Caratlane, as well as in the domestic wristwatch segment with brands including Titan, Fastrack, Sonata, and Xylys. In FY2023, the jewellery segment accounted for over 85% of the consolidated revenue and more than 90% of the consolidated EBIT of Titan.

Technical Analysis and Bearish Signals 

On Thursday, the stock of Titan witnessed a decline of over 3%, breaching the prior low and now resting at a critical support level. It has formed lower highs and parallel lows, with its trading position below all key moving averages. The Moving Average ribbon indicates a downtrend, and the stock is currently trading 3.87% below the 50-day moving average. Additionally, the Bollinger bands are expanding, the MACD line has dipped below the zero line with a strongly bearish histogram, and the RSI has entered the bearish zone. The Elder impulse system has also formed a robust bearish bar, while the KST has issued a fresh bearish signal.

Trading Strategy for Titan

In summary, Titan has breached its initial support level and closed at a parallel support. A further decline below Rs. 2518 is deemed negative, potentially testing Rs. 3480. Traders are advised to maintain a stop-loss at Rs. 2545. Should the stock fall below Rs. 3480, it is recommended to continue with a trailing stop loss strategy.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.