Vinay Rajani
Crompton Greaves Consumer has been consolidating between Rs 220 and Rs 245 for the last two months. The stock price has formed multiple bottoms around Rs 220 levels.
The stock has witnessed a healthy correction of 26 percent from January 2018 highs which resulted in the formation of a “Doji” candlestick pattern on the monthly charts for the last two months, indicating a good probability of bullish trend reversal from current level.
Consumer electric stocks remained in traction in the recent past and Crompton is also likely to catch up with that uptrend. Technical evidence indicates that the stock is getting accumulated on dips and is now all set to appreciate from here with the rise in momentum.
We recommend traders to buy Crompton Greaves Consumer for the upside target of Rs 260, and keep a stop loss below Rs 217.
Disclaimer: The author is Technical Analyst, PCG Desk, HDFC Securities. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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