Titagarh Rail shares jump 9% today; how strong is this fresh uptrend?

Shares of Titagarh Rail Systems Ltd saw a sharp uptick in Tuesday's trade. The stock surged 8.64 per cent to hit a day high of Rs 1,124.10. It was last seen trading 6.43 per cent higher at Rs 1,101.30. At this price, the multibagger counter has zoomed 224.05 per cent in the past one year. Despite the mentioned rise, it has slipped 11.83 per cent from its one-year high value of Rs 1,249, a level seen earlier this year on January 20.

Technical analysts largely shared positive views on Titagarh. Support could be seen at Rs 1,080, followed by Rs 1,070, 1,030 and Rs 989 levels. On the higher side, the stock has potential to revisit its 52-week high level. On the contrary, an analyst recommended to book profits at current levels.

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "We have a positive view on the stock. It has potential to see Rs 1,220-1,250 levels. Support will be at Rs 989."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, "The counter looked strong on daily charts. It could hit a target of Rs 1,280 in the near term. Keep stop loss placed at Rs 1,080."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 1,030 and resistance at Rs 1,125. A decisive close above Rs 1,125 level may trigger a further upside till Rs 1,200. The expected trading range will be between Rs 1,000 and Rs 1,225 for a month."

Rupak De, Senior Technical Analyst at LKP Securities, said, "Titagarh is exhibiting strength in today's trading session following consolidation on daily charts. Sentiment looks favorable to propel the stock towards Rs 1,200 in the short term, with support positioned at Rs 1,070."

AR Ramachandran from Tips2trades said, "Titagarh Rail is bullish but also very overbought on daily charts with next resistance at Rs 1,125. Investors should keep booking profits as a daily close below support of Rs 1,070 could lead to target of Rs 910 in the near term."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 71.26. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 55.63 against a price-to-book (P/B) value of 10.07.

Around 3.93 lakh shares changed hands on BSE at the time of writing this story. The figure was higher than the two-week average volume of 63,000 shares. Turnover on the counter came at Rs 43.35 crore, commanding a market capitalisation (m-cap) of Rs 14,827.58 crore. There were 71,024 sell orders against buy orders of 26,098 shares.

Titagarh Rail, formerly known as Titagarh Wagons, is a private shipbuilder, defence, railway wagon manufacturer headquartered in Kolkata, West Bengal.