NEW DELHI: Tata Group company and one of billionaire investor Rakesh Jhunjhunwala’s favourite stocks -Titan - on Friday nosedived over 7% to hit a low of Rs 1,911 and closed the Friday session 6% lower at 1,935.35.
In three months, the retail giant has crashed nearly 30% from its 52-week high of Rs 2,767.55 on the BSE and in the daily chart, it was trading below its 50-day, 100-day and 200-day simple moving average (SMA) placed at 2262.02, 2378.18 and 2360.81, respectively.
According to analysts, the large-cap stock may crash more if it is unable to hold Rs 2050 level and may drift down towards Rs 1750/1510 over the short to medium term.
“On the daily chart, it has been corrected with the “lower top lower bottom” formation, indicating a prevailing bearishness. Besides, the stock is in the death cross, indicating a medium-term weakness in the stock trend. A stock or an index is considered to be in death cross when 50DMA (daily moving average) falls below 200DMA,” said Rupak De, Senior Technical Analyst at LKP Securities.
De added that the stock may remain in the bears’ grip as long as it remains below the recent consolidation low of 2050. On the lower end, the price may drift down towards 1750/1510 over the short to medium term. The fall in Titan comes amidst a global selloff in the equity market after US Fed Reserve hiked interest rate. It also comes at a time when inflation is India is at a multi-year high. Titan had last month reported a 7.21 % decline in its consolidated net profit at `527 crore in the fourth quarter ended March 2022.