Crisil reverses from a key base

A break above ₹1,650 will take the stock up to ₹1,800 over the medium term

Here are answers to readers’ queries on the performance of their stock holdings.

Can I buy the stocks of Crisil and CARE at the current levels. What are the supports and resistances?

Prakash Rao

Crisil (₹1,544.6): The stock of Crisil gained almost 3 per cent last week, breaching a key resistance at ₹1,500. This rally underpins bullish momentum and the stock can continue to trend upwards in the short term. The long-term trend has been down for the stock since recording a new high at ₹2,490 in October 2016. However, it found support at ₹1,260 this October and bounced up strongly. The long-term downtrend appears to have come to a halt at this multi-year low of ₹1,260 and the stock has been on a short-term uptrend since late October.



You can buy the stock in dips while maintaining a stop-loss at ₹1,350. Investors with a long-term perspective can also buy with the stop-loss at ₹1,350 levels. An emphatic break above the key barrier at ₹1,650 will pave way for an up-move to ₹1,750 and ₹1,800 in the medium term. But the stock could face difficulty in surpass ₹1,800 because of significant long-term resistance.

A strong break-out of this hurdle will take the stock higher to ₹1,950 and ₹2,000 in the long run. On the downside, a fall below the immediate support level of ₹1,480 can pull it down to ₹1,400 and ₹1,350 levels.

That said, a conclusive plunge below ₹1,350 will mar the bullish stance and drag the stock down to ₹1,300 and ₹1,250 levels.

CARE Ratings (₹991.2): The stock of CARE Ratings has been on an intermediate-term downtrend since recording a high of ₹1,800 in July 2017. This September, the stock breached a key support at ₹1,200 and continued to trend downwards.

Both the medium as well as short-term trends are also down for the stock. But the stock recently found a temporary base at ₹951 and began to move higher. It has a key long-term support in the ₹860-900 band.



A fall below ₹950 can take support at the long term base zone.

Investors should tread with caution and consider buying at lower levels with a stop-loss at ₹850. Immediate resistances are at ₹1,050 and ₹1,100.

A strong rally above these resistances will show signs of bullish momentum and take the stock up to ₹1,200, which is a significant short-term trend-deciding level.

Only a decisive break above ₹1,200 will alter the short-term downtrend and take the stock up to ₹1,300 and ₹1,400 over the medium term horizon.

To alter the intermediate-term downtrend, the stock needs to advance above ₹1,450. Key resistances above this level are placed at ₹1550 and ₹1600.

Conversely, a conclusive fall below the vital base level of ₹860 will reinforce the downtrend and drag the stock down to ₹800 and then to ₹700 over the long term.

Send your queries to

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get


This article is closed for comments.
Please Email the Editor