Below is a chart of Titan Co. Ltd. from 1997-2022, reflecting Price Momentum data.
The descending red arrow on the far right side of the chart indicates the October 11, 2021 posting we did regarding the stock. At the time, we said the following:
Since that time, the price of Titan has registered the following change:
Compared to the Nifty 50 Index, Titan has increased +6.72% versus -1.56% in the Index. A very good performance given the state of markets generally. However, in the intervening period, Titan has declined as much as -24%.
What stands out about the current PMI is that Titan is still in a declining trend and that while buying the stock now should generate long term gains, there is the prospect of a better buying opportunity in the future.
Does this mean don’t consider the stock now? No. Instead, it means that there is downside risk that needs to be factored in or a longer timeframe for investment.
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