Titan soars over 5% on June 21! Time for a “value-buy”?

The stock of TITAN has soared over 5% on Tuesday and is the top gainer amongst Nifty stocks.

The shares of Titan Company Ltd were under strong sell-off in recent days due to weak market sentiment. The stock had plunged below its key moving averages and hit a fresh swing low of Rs 1910.55. However. in the past two days, the stock has jumped over 8%. Thus, it has shown a good bounce from its lower levels and has witnessed strong buying today. The volume registered today is greater than the 10-day and 30-day average volumes. On the technical chart, the stock has formed a strong bullish candle and is showing a sign of reversal.

As per the technical parameters, the stock’s strength has improved significantly. The 14-period daily RSI (43.34) has registered a breakout from its falling trend. Moreover, it has also jumped over its oversold counters. Meanwhile, the On Balance Volume (OBV) has jumped and indicates improved strength from the volume’s perspective. The Relative Strength (RS) has surged past the zero line and demonstrates outperformance of the stock as against the broader market. Meanwhile, the TSI and KST indicators also show improvement in the stock’s performance. Thus, the price action along with the technical parameters indicate bullishness.

Good trading opportunities will arise when the stock sustains above its resistance level of Rs 2160 level. Interestingly, this level also happens to be its 20-DMA level. Any rise above this level can see the stock zoom towards the level of Rs 2250 and beyond. Meanwhile, the stock has plunged over 30% from its lifetime high and is a great value buy. Long-term investors can accumulate such good quality stocks at dips and can be rewarded in long term. With global recession looming, gold prices are expected to rise which shall ultimately benefit the company. Thus, the stock is also a good strategic buy. You can include this stock in your watchlist to track further development.