Rekha Jhunjhunwala’s biggest stock bet Titan Company Ltd has sent three bullish signals on the daily and weekly charts. Axis Securities believes the stock can be bought at the prevailing levels for a short-term upside of 8-11 per cent over a span of 3-4 weeks.
In a short note, Axis Securities noted that the Tata group stock has staged a decisive breakout on the weekly chart above the falling channel pattern that had persisted since late September 2024, closing at Rs 3,622 with a strong bullish candle.
A falling channel breakout occurs when the price moves decisively above the upper boundary of a downward-sloping channel. This signals a potential trend reversal from bearish to bullish, often supported by increased volume for confirmation.
Shares of Titan Company were trading 0.51 per cent higher at Rs 3,671.25 on BSE. Jhunjhunwala held 5.15 per cent stake in Titan Company at the end of March quarter. That stake at Thursday’s market price was valued at Rs 16,783 crore.
The Titan’s breakout on the weekly chart has been accompanied by a notable surge in volume, indicating robust market participation and enhancing the credibility of the move, it said.
Also, the stock is also nearing a breakout above a Cup and Handle pattern on the daily chart, with resistance placed at Rs 3,670 apiece. The Cup and Handle pattern is a bullish continuation pattern that resembles a rounded ‘Cup’ followed by a slight downward consolidation or ‘Handle’.
“A sustained close above this level would further strengthen the bullish bias and signal the potential for continued upside,” Axis Securities said.
Add to this, the Relative Strength Index (RSI) has crossed above its signal line and is holding above the 50-mark, highlighting strengthening momentum. With these bullish technical cues, Titan appears well-positioned to extend its rally towards the Rs 3,885 and Rs 4,000 levels in the near term,” Axis Securities said.
The brokerage suggested a buy range of Rs 3,640-3,568 and suggested a target of Rs 3,885-4,000 per share. A trend reversal is likely at Rs 3,470, the domestic broking firm said. Titan’s 20-day SMA stood at Rs 3,512 and 200-day at Rs 3,384.
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