Will Trent shares rebound after Q1 update triggers 13% crash? Here’s what technical charts indicate

Analysts advise caution after Trent shares crashed around 13% to post the sharpest single-day plunge in more than a year on Tuesday, following the Zudio-parent’s Q1 business update which failed to meet investor expectations.

What lies ahead for Trent shares?

After the 13% crash, Trent shares have technically slipped below their 20-day EMA, while the RSI has witnessed a sharp downtick, signalling a shift in momentum from bullish to bearish, said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities. He added that the stock’s DI- has crossed above the DI+ on the ADX indicator, suggesting that sellers are gaining control over buyers. The Rs 3,120–3,130 zone is expected to act as an immediate resistance, and the stock is likely to remain under pressure as long as it trades below this zone, according to the analyst.

Taking a look at the longer picture, Harshal Dasani, Business Head at INVasset PMS, explained that Trent shares have seen a clear technical downtrend, falling around 50% from its 2024 peak near Rs 6,000 to the current Rs 2,967 zone. He noted that the structure is showing a well-defined series of lower highs and lower lows on the monthly candles.

Also read: Trent Q1 revenue rises 19% to Rs 5,666 crore as Westside, Zudio expansion continues

“The June rally to the Rs 3,400 zone was itself a lower high against the prior peak, and Tuesday’s 11% single-session break has invalidated even that short-term recovery attempt. The monthly RSI at 49.98 is the more telling data point. It has collapsed from a peak reading above 90 to just below 50, and every prior attempt to reclaim the 60 zone has failed, which is the classic footprint of a stock still working through a multi-quarter distribution phase rather than one in a corrective pause. Volume on the down-months has been visibly higher than volume on the up-months, confirming institutional distribution rather than accumulation,” the analyst explained.

“The technical read is that the Rs 2,780 to Rs 2,850 support becomes the first line of defence, and a decisive break below Rs 2,780 opens the path toward the Rs 2,400 zone on the monthly frame. The stance on the stock stays cautious until either the monthly RSI reclaims the 60 zone or the price prints a higher high above Rs 3,400 with volume confirmation,” Dasani added.

Trent’s stock crash is healthy valuation consolidation?

The recent correction in Trent’s share price represents a healthy valuation consolidation rather than structural decay, said Nishchal Jain, Quant Researcher at Share.Market by PhonePe. He added that the underlying investment thesis remains firmly intact, anchored by the hyper-scalable Zudio model and deep consumer trust, framing this market dip as a temporary realignment of explosive store network growth with near-term unit economics.
For market participants currently maintaining exposure, the prevailing sentiment shifts away from reactionary liquidation, Jain said which advising ‘Hold’ or ‘Accumulate on Dips’ stance. As the long-term investment framework remains structurally sound, seasoned investors may leverage this valuation breather as a strategic window to deepen exposure near key technical floors, he said.Conversely, for those awaiting an opening, the analyst believes that this retracement provides a long-awaited gateway into a high-conviction retail powerhouse. Nevertheless, a methodical ‘Staggered Buying’ tactical plan is essential to weather temporary price volatility and capitalize on the stock as it carves out a durable bottom, Jain concluded.

Also read: Rs 18,000 crore crash in Trent shares explained, and should you buy the dip

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)