Titan Acquisition's 15min chart sees SMA20 trigger upward turn.

Titan Acquisition's 15-minute chart has recently triggered a SMA20 Turn Upward, which indicates a shift in market sentiment, with buyers gaining control and driving the price upward in the short-term. This turn upward in the moving average at 20 days suggests a change in market dynamics, with a potential increase in buying pressure and a subsequent rise in the stock's value.

Titan shares experienced a significant shift in market sentiment with the recent 15-minute chart triggering an SMA20 Turn Upward, signaling buyers gaining control and driving the price upward. This upward movement in the 20-day moving average suggests a potential increase in buying pressure and a subsequent rise in the stock's value [2].

Despite reporting strong first-quarter updates, including a 20% growth in the consumer business and an 18% growth in the jewellery vertical, Titan shares slumped by more than 5% on Tuesday. The company also opened 10 new stores during the quarter, expanding its retail network presence to 3,222 as of June 30 [1]. This strong financial performance, coupled with the recent upward movement in the SMA20, indicates a potential turnaround in investor sentiment.

SEBI-registered analysts have expressed differing opinions on Titan's valuation. While Vijay Kumar Gupta believes the stock is overvalued and could limit near-term upside, Rohit Mehta notes that the stock is inching closer to record highs and is just ₹171 away from its all-time high of ₹3,874 [1][2]. Mehta also pointed to a clean breakout from a long sideways zone, supported by a rounded bottom pattern and rising volumes, both of which are signs of institutional buying and trend strength [2].

The stock price movement has led to apprehensions on Dalal Street, with retail sentiment on Stocktwits shifting from ‘neutral’ to ‘extremely bearish’ a week ago, amid high message volumes [1]. However, the recent SMA20 Turn Upward suggests a potential change in this sentiment, with buyers gaining control and driving the price upward.

Titan's strong fundamentals, including a 19% increase in revenue and a 13% growth in profit after tax in Q4, driven by the jewellery and watch segment, support the potential upside [1]. Additionally, the company's return on equity (RoE) stands at 32%, and although the company maintains a low net debt, free cash flow turned negative in FY25 due to a rise in working capital [1].

The stock trades at 98 times earnings and 28 times book value, significantly above sector averages, with discounted cash flow (DCF) analysis suggesting overvaluation [1]. High gold prices continue to be a headwind, but Titan's strong performance relative to peers like Kalyan Jewellers and Trent mitigates this risk [1].

Technically, Titan shares are finding key support between ₹3,200 and ₹3,400, with strong resistance close to ₹3,900. Momentum indicators, such as the relative strength index (RSI) and moving average convergence/divergence (MACD), are showing neutral signals, suggesting a range-bound movement in the near term [1].

In conclusion, Titan shares' recent SMA20 Turn Upward indicates a potential shift in market sentiment, with buyers gaining control and driving the price upward. While analysts have differing opinions on the stock's valuation, the strong fundamentals and recent performance suggest a potential turnaround in investor sentiment.

References:
[1] https://stocktwits.com/news-articles/markets/equity/titan-shares-growth-story-intact-but-premium-valuations-prompt-caution-says-sebi-ra/chFvmMcR5Xx
[2] https://stocktwits.com/news-articles/markets/equity/titan-nears-record-highs-sebi-ra-rohit-mehta-flags-breakout-as-momentum-builds/chF0aqBRThT