We recommend a sell in the stock of Titan Industries from a short-term perspective. It is apparent from the charts of the stock that after taking support at around Rs 215 in August 2012, the stock started trending upwards. It was on a medium-term uptrend until it peaked out registering an all-time high at Rs 313 in late November. The reversal was backed by negative divergence in daily moving average convergence divergence and price rate of change indicators. Since then, the stock has been in a short-term downtrend. While trending down, the stock decisively breached its 21- and 50-day moving averages last month and is hovering well below them. Moreover, on Tuesday, the stock fell by 3 per cent accompanied by good volumes, breaking through its key support at Rs 280. This reinforces its bearish momentum. With above-average volume, the stock declined more than one per cent in the previous session. The daily relative strength index is featuring in the bearish zone and weekly RSI is sloping down in the neutral region. The daily MACD is moving downwards in line with the stock price implying downward momentum.

Both daily as well as weekly price rate of change are hovering in the negative zone implying selling interest. From a short-term perspective, we are bearish on the stock. We expect its decline to prolong and reach our price target of Rs 260 or Rs 255 in the ensuing trading sessions. Traders with short-term perspective can consider selling the stock with stop-loss at Rs 272 levels.

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