Technical Analysis

Crompton Greaves Consumer Electricals (₹234.3): Buy

Gurumurthy K BL Research Bureau | Updated on January 01, 2019 Published on January 01, 2019

The outlook for the stock of Crompton Greaves Consumer Electricals is bullish. The stock has surged 3 per cent on Tuesday breaking above the key resistance level of ₹230. This keeps intact the uptrend that has been in place since October. The indicators on the charts are also positive. The 21-day moving average has crossed over the 100-day moving average. This is a positive signal indicating that the downside could be limited.

Immediate support is at ₹230 and then cluster of supports are poised in between ₹227 and ₹224. Dips to these support levels may find fresh buyers coming into the market. An upmove to ₹242 and ₹245 is likely in the near term. A strong break above ₹245 will then pave way for the next target of ₹250.

Traders can go long at current levels and also accumulate on dips at ₹231 and ₹229. Stop-loss can be placed at ₹227 for a target of ₹250. Revise the stop-loss higher to ₹238 as soon as the stock moves up to ₹242. The outlook will turn negative only if the stock breaks below ₹224 decisively. But such a strong downmove looks unlikely at the moment.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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