Technical Check: This Jhunjhunwala owned stock eyes fresh 52-week high in 6 months; time to buy amid Russia-Ukraine war?

Titan Company Ltd, part of S&P BSE Sensex and Nifty50 indices, rallied over 70 per cent in the last year compared to 10 per cent upside seen in the Nifty50 in the same period but the rally may not be over yet, suggest experts based on charts.

The stock which is owned by Rakesh Jhunjhunwala has been an outperformer. The ace investor owns 5.1 per cent stake worth more than Rs 11,000 cr at the end of the December quarter, data from Trendlyne showed.

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Not just Jhunjhunwala but domestic mutual funds also raised their stake in the company. MFs increased their holding from 4.19 per cent in the September quarter to 4.45 per cent at the end of the December quarter, data showed.

The stock with a market capitalization of nearly Rs 2.2 lakh cr has been making higher highs and lows which is positive for bulls. Recently, the stock closed above the 20-Week Moving Average which suggests that the momentum could continue.

The Tata group firm reported an 11.81 per cent increase in consolidated net profit to Rs 530 crore for the third quarter ended in December, led by income growth in the jewellery division.

The stock can be bought now or on dips amid ongoing volatility caused by the Russia-Ukraine war as the potential upmove could take the stock towards its swing high of Rs 2650 and then above Rs 3,000 in the next 6 months, suggest experts.

On mid-term charts, Titan is moving with higher highs and lows formation. The stock is currently consolidating in range of 2250-2650 for the past 5 months.

The stock is showing relative outperformance and has not corrected sharply unlike the weakness in the markets.

“Currently the stock is trading above the 20 Week SMA (2440) whereas Nifty is trading 5% below the 20 week SMA (17530),” Malay Thakkar, Technical Research Associate, GEPL Capital, said.

“The RSI indicator plotted on weekly has formed a bullish hinge near the 40 mark and has started moving higher indicating bullish momentum in the prices,” he said.

Thakkar said that the stock has the potential to move towards 2650 (Swing High) and break above which can take it towards 3050. The downside support for the stock is placed at 2260, he added.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)