Multibagger Titagarh Rail shares extend fall, dive 10% today on profit booking. Analyst views

Shares of Titagarh Rail Systems Ltd continued to fall for the second consecutive session in Tuesday's deals. The stock cracked 9.84 per cent to hit a day low of Rs 706.55 against its previous close of Rs 783.65. At this price, the scrip has declined 14.66 per cent from its 52-week high of Rs 827.95, a level seen on August 25, 2023. Yet, the multibagger counter has zoomed 417.81 per cent from its one-year low price of Rs 136.45, hit on September 28 last year.

The company today issued a clarification on price movement. "We are not aware of the reason for significant movement in the price of our shares. The movement in the share price is purely market driven and may be a combination of various factors including market conditions/ sentiments. The management of the company is not connected with the movement in the price of the shares," it stated.

On technical setup, analysts said the counter saw profit booking from all-time high level. Support on the counter could be seen at Rs 700, followed by Rs 690 and Rs 680 levels.

Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, "Titagarh Rail Systems is in a secular up trend, marching in the cycle of higher highs – higher lows on all charts. Recently, the stock has seen some cool-off/profit booking from the all-time high zone and slipped towards consolidation (20-DEMA). Post such rally, some cool-off is prominent and considered healthy. As far as levels are concerned, the Rs 700-650 zone is likely to cushion any short-term blip, while sustenance above the same could be seen as an opportunity to re-enter from a short to medium-term perspective."

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has witnessed a slight correction from the peak of Rs 828 and is now retesting the breakout levels of Rs 700. The near-term support would be maintained at around Rs 690 level. With the RSI (Relative Strength Index) indicator well placed, there is further upside scope for the stock to rally."

Market expert Ravi Singh said, "The stock is currently witnessing profit booking after giving a good rally. There is a strong support around Rs 680 level and the stock may rebound from this level. Investors are advised to hold their positions as a closing below Rs 680 level can only push the stock to a further dip."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Titagarh is making higher highs and higher lows structure followed by daily RSI constantly trading above the 50 zone, suggesting that it is in a well-established uptrend. We saw some profit bookings. Going forward Rs 700 would be credible support and resistance is seen near Rs 800 level."

AR Ramachandran from Tips2trades said, "Titagarh Rail Systems is bearish on the daily charts with strong resistance at Rs 792. A daily close below Rs 722 could lead to target of Rs 610 in the near term."

Kolkata-headquartered Titagarh Rail, formerly known as Titagarh Wagons, is engaged in the manufacturing and selling of freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialised equipment and bridges, and ships.

 

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