“Trent – Fashion, formats and footprint are strong; the market is now correcting the hype.”

Technical View (Daily / Positional)

TRENT has fallen about 40–42% from its 2025 high and recently made a new 52‑week low near ₹4,160–4,200, so the stock is clearly in a downtrend and trading well below its 50‑day and 200‑day moving averages.​ Most key moving averages (20/50/100/200‑DMA) are on “Sell” mode, which means every bounce is facing selling and the overall trend is still weak.​ RSI(14) is in the oversold 25–35 zone and MACD is negative, so the stock is quite weak but can see short‑term pullback moves from lower levels.​ Short term, support is around ₹4,950–5,000 and resistance near ₹5,050–5,100; any rise towards higher averages is better used with strict stop loss rather than aggressive chasing. Upcoming Events and Potential Impact Q3 FY26 results: Market will track revenue growth, same‑store sales of Westside/Zudio and margins; strong numbers can stabilise the stock, while another weak quarter may lead to further de‑rating.​ Store expansion: Any hint of slower expansion or weak unit economics in Westside, Zudio or Star will be negative; confirmation of healthy paybacks and strong per‑store sales will support the long‑term story.​ Broker reports: Post‑result target cuts or downgrades by major brokers can keep the stock under pressure; if estimates and ratings stabilise, it will indicate that most negatives are already priced in. Key Positives for TRENT Backed by the Tata Group with strong execution in multiple retail formats (Westside, Zudio, Star) and a scalable, own‑brand heavy model.​ FY20–FY25 saw very strong compounding, with revenue growing over 5x and PAT more than 10x, showing robust brands and disciplined expansion.​ Healthy balance sheet and high RoE/RoCE, supported by asset‑light elements and mature stores, support a long‑term compounding story once growth stabilises.​