The outlook for the stock of Crompton Greaves Consumer Electricals is bullish. The stock surged over 3 per cent on Monday breaking above the key resistances at ₹252 and ₹255. The strong breakout above ₹255 has brought the prolonged sideways consolidation in the stock to an end. Indicators on the charts are also positive.
The 21-day moving average has crossed over the 55- and 100-day moving average. It is also on the verge of crossing over the 200-day moving average. This is a bullish signal indicating that the downside in the stock could be limited in the short-term.
Intermediate dips to ₹255 and ₹250 is likely to find fresh buyers coming into the market and limit the downside. As such, the stock is likely to retain the bullish momentum and rally to ₹280 and ₹285 in the coming days.
Short-term traders can go long at current levels and also accumulate on dips at ₹255. Stop-loss can be placed at ₹247 for the target of ₹283. Revise the stop-loss higher to ₹265 as soon as the stock moves up to ₹269.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)