Titagarh Rail shares rise 5% on HSBC upgrade. Here're near-term technical levels to watch

Shares of multibagger Titagarh Rail Systems Ltd gained 5% today after brokerage HSBC raised its target price to Rs 900 from the earlier Rs 750. The stock has already delivered over 1600% returns to investors in the last three years. The stock of railway wagons maker, which closed at Rs 44.35 on September 14, 2020 rose to a high of Rs 776.50 on September 15, 2023, clocking 1627% returns on BSE.

In the current session, shares of Titagarh Rail Systems zoomed 5.02% intraday to Rs 788.35 against the previous close of Rs 750.60. Total 0.95 lakh shares of the firm changed hands amounting to a turnover of Rs 7.35 crore. Market cap of the firm rose to Rs 9965.86 crore. Later, the stock closed 4.58% higher at Rs 784.95 on BSE.

In the last one year, the Titagarh Rail Systems stock has surged 378%. It hit a 52 week low of Rs 136.45 on September 28, 2022.

International brokerage HSBC said that robust core industries' volume trends underpin strong demand for railway wagons from the private sector. The wagon orders from the private sector come with superior profitability as well as working capital terms, it added while raising the price target to Rs 900 for the railway stock.

Here's a look at what analysts said on the technical outlook of the stock.

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Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has witnessed heavy profit booking from the peak zone of Rs 866 level and has major support zone near Rs 676 from where it has indicated a pullback once again to improve the bias to some extent. A decisive move past above Rs 770 zone will further strengthen the trend and then one can anticipate an upward move in the coming days for targets of Rs 830-855."

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 time frame charts. Recently, the stock has seen some cool-off/profit booking from the all-time high zone and slipped on daily charts. Post such a 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."

Ganesh Dongre, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "On daily charts, the stock has seen a bearish engulfing candlestick pattern at a resistance of Rs 850 level, which is bearish in nature. A multiple top also has been formed at the same level, which indicates that it is a strong resistance level. So, we may see further selling in this stock in the upcoming days. We advise traders to book profit in this stock at current level and avoid fresh long for now."

Abhijeet from Tips2trades said, "Titagarh Rail Systems is bearish on the Daily charts with strong resistance at Rs 855 . Investors should book profits at current levels as a daily close below the support of Rs 750 could lead to target of Rs 636 in the near term."

In terms of technicals, the relative strength index (RSI) of the stock stands at 51.6, signaling it's trading neither in the overbought nor in the oversold zone. Titagarh Rail Systems shares are trading higher than the 50 day, 100 day and 200 day but lower than the 5 day, 10 day and 20 day moving averages.     

Nine promoters held 44.97 per cent stake in the firm and 141553 public shareholders owned 55.03 per cent or 6.99 crore shares as on July 7, 2023. Of these, 1.37 lakh resident individuals held 2.68 crore shares or 21.14% stake with capital up to Rs 2 lakh. Only 11 resident individuals with 3.71% stake held capital above Rs 2 lakh as on July 7, 2023.  

About the Company    

Titagarh Rail Systems is engaged in the manufacturing and selling of freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialised equipment and bridges, and ships. The company operates through three segments: freight rolling stock, passenger rolling stock, and shipbuilding, bridges & defence.    

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