Titan, Escorts: What next for stocks where Jhunjhunwala cut stake in Q2

Federal Bank is reflecting a move towards Rs 80 levels

Ace investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala had increased their stake in pharmaceutical companies such as Lupin and Jubilant Life Sciences, along with Agro Tech Foods and NCC during the second quarter of the current fiscal (Q2FY21) while they trimmed their stake in Titan Company along with tractor-maker Escorts and private lender Federal Bank during the period, according to this report. 

At the bourses, shares of Escorts have gained around 17 per cent while those of Federal Bank have rallied 24.2 per cent in November. Meanwhile, Titan Company has rallied 16.5 per cent during the month, exchange data show. The rise in Titan also comes on the back of a drop in gold prices. Gold futures have slipped around 6 per cent from Rs 50,804 per 10 gram on October 30 to Rs 47,918 per 10 gram on November 30, data fetched from MCX show.

Let's take a look at how the three stocks fare on technical parameters and how you should trade them. 

Titan Company Limited (TITAN): The range of Rs 1,300 to Rs 1,400 seems to be the resistance range for the stock, as per the weekly chart. With the “Higher High, Higher Low” formation, the counter is set to cross this resistance and rally towards the uncharted territory of Rs 1,700 to Rs 1,900 levels. The overall trend is optimistic, till the counter defends the support of Rs 1,250 on a weekly scale. CLICK HERE FOR THE CHART
 
Escorts Ltd (ESCORTS): On the daily chart, a clear support of 100-day moving average can be seen from May 2020 onwards. This suggests that the positive bias will prevail, till the said moving average is not breached. The 100-DMA is currently placed at Rs 1,214 levels. On an immediate scale, a breakout above Rs 1,300 suggests a positive upside towards Rs 1,500 levels. This move has a closing basis support of Rs 1,275 levels. CLICK HERE FOR THE CHART
 
Federal Bank Ltd (FEDERALBNK): This banking stock has crossed the significant resistance of Rs 62 with strong volumes. This reflects the positive strength and upward momentum, which is heading towards Rs 80 and Rs 90 levels from a medium-term scale. The closing basis support stays at Rs 60 and Rs 55 levels. CLICK HERE FOR THE CHART