Titan sinks 10% even as management addresses investor concerns
Shares in jewellery maker Titan plunged 10 per cent to a low of Rs 238.60 on Tuesday even as the management was in the middle of addressing investor concerns on the impact of the recent Reserve Bank notification on gold imports on June 4.
The RBI had announced tough measures to curb gold imports last Tuesday after buying soared in May and threatened to widen a current account deficit which is already at a record.
Market analyst Sarvendra Srivastava said if Titan broke 215 levels, a distribution pattern will emerge, which will lead to more downside in the stock. Until then, a range of 215-250-255 was possible on Titan, he added.
"The stock has topped out at 285-283 levels. Some bounce can be expected, but the stock has established lower top-lower bottom pattern and may hit 200 levels over the next 2-3 months," Shrikant Chouhan of Kotak said.