Titan is in a long-term uptrend

The uptrend will be in place as long as the stock trades above the ₹700-725 support

Here are answers to readers’ queries on the performance of their stock holdings.

Can the stocks of Titan and Grasim Industries be bought at the current price from a long-term perspective?

TVS Prakash Rao

Titan Company (₹1,095.4): The stock of Titan Company is in an uptrend across all-time frames — long, medium and short-term. It recorded a new 52-week high at ₹1,112.40 on Friday. Following a corrective decline, it found support at ₹750 last October. Since then, the stock has been in an intermediate-term uptrend.

 

 

The short-term outlook will be positive as long as the stock trade above ₹1,000. The stock trades well above its 50- and 200-day moving averages. Medium-term uptrend will remain intact as long as the stock trades above ₹870 levels. Both the daily as well as weekly indicators such as relative strength index and moving average convergence divergence feature in the positive territory. Investors with a medium-term perspective can buy the stock in declines while maintaining a stop-loss at ₹850 levels.

Key supports below ₹1,000 are at ₹950 and ₹870 levels. An emphatic break below ₹870 levels will mar the intermediate-term uptrend and drag the stock down to ₹800 and ₹750 levels. The long-trend uptrend will be in place as long as the stock trades above the significant long-term support band between ₹700 and ₹725. Investors with a long-term horizon can stay invested with a stop-loss at ₹690 levels. An upward reversal from the key supports at ₹1,000 or ₹950 can take the stock to ₹1,200 and above over the long run.

Grasim Industries (₹829.6): The stock of Grasim Industries registered a 52-week low at ₹688 in mid-February this year and found support. The long-term downtrend that commenced from the new high of ₹1,299 in November 2017 appears to have come to a halt at the 52-week low. Thereafter, the stock reversed direction and has been in a nascent uptrend. As long as the stock trades below the significant resistance at ₹1,050, the long-term downtrend will remain in place. However, it is witnessing buying interest at lower levels and is in a strong up-move over the last one month.

 

 

The stock now faces a key resistance at ₹850 and immediate support is at ₹750. A strong break above ₹850 can take the stock up to ₹900 and ₹1,000 in the medium term. Investors with a medium-term horizon can make use of dips to buy the stock, while maintaining a stop-loss at ₹700.

A decisive break above ₹1,000 can take it higher to the trend-deciding level of ₹1,050 levels. Subsequent targets are ₹1,100 and ₹1,130 in a strong breakthrough of ₹1,050 levels. But a decline below ₹700 will reinforce the downtrend and drag the stock down to the long-term base level of ₹650. Next key support below this level is at ₹600.

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