The stock started its journey of higher highs and higher lows from above Rs 40 levels recorded in March 2021 to January 2022, where it witnessed some profit-booking.Titagarh Wagons slipped below the crucial 50 and 200-DMA in February 2022 on daily charts but quickly created a base above Rs 75 on 24 February after which it bounced back sharply to climb above Rs 100.
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Titagarh Wagons, part of the railway wagons industry, hit a fresh 52-week high of Rs 127 on 12 July 2022 and the technical setup suggests momentum is likely to continue in the stock.
Short-term traders can look to buy the stock now or on dips for a possible target of Rs 170-200 in the next 6 months, suggest experts.
The stock started its journey of higher highs and higher lows from above Rs 40 levels recorded in March 2021 to January 2022, where it witnessed some profit-booking.
Titagarh Wagons slipped below the crucial 50 and 200-DMA in February 2022 on daily charts but quickly created a base above Rs 75 on 24 February after which it bounced back sharply to climb above Rs 100.
Recently, the stock took support above Rs 90 levels back in June and May before bouncing to hit a fresh 52-week high. On the weekly charts, it broke above a narrow consolidation range of Rs 117-90 (March-June period) earlier in July 2022.
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On the price front, the stock is trading above crucial short- and long-term moving averages placed at 5,10,20,30,50,100, and 200-DMA which is a positive sign for the bulls.
“The stock price started its up move from Rs 41 (March 2021) to Rs 123.85 (Jan 2022), making series of higher bottoms & higher tops with minor price corrections during the move,” Bharat Gala, President - Technical Research, Ventura Securities, said.
“During the move, the stock continuously traded above the averages and super trend was in positive mode. Most of the time, the stock traded in a range of Rs 124 to Rs 85 between October 2021 to June 2022,” he said.
The trend in the stock suggests continuous buyers' interest. A weekly bullish candle, supported by volumes has been formed and a new high of Rs 125.5 is made by the stock, initiating a range breakout.
“The KST, ADX & Demand Index Indicators have generated a Primary buy signal. The possible targets are Rs 170-200,” recommends Gala.
He further added that if the stock price corrects downwards, the buy levels are (Rs 117-113)-Rs 109-(Rs 106-103). A stop loss to be observed in the trade is Rs 95.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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