Crompton Greaves (Rs 164.7)
Investors with short-term perspective can consider buying the stock of Crompton Greaves. It is seen from the charts of the stock that after registering a 52-week low at Rs 133.7 on August 19, it changed its direction triggered by positive divergence in daily price rate of change indicator. Moreover, the stock's important support band between Rs 130 and Rs 135 cushioned it from declining further. Since then it has been on a nascent short-term uptrend.
On Wednesday, the stock emphatically broke through its immediate key resistance at Rs 160 by surging Rs 8.3 or 5.3 per cent. There is an increase in volumes in the last two trading sessions. The stock has crossed over its 21- and 50-day moving averages recently and is hovering well above them. Its daily relative strength index has entered into the bullish zone and weekly RSI is on the verge of entering into the neutral region from the bearish zone.
Daily moving average convergence divergence indicator is on the brink of entering into the positive territory implying upward momentum. Both daily and weekly price rate of change indicators are featuring in the positive terrain signalling buying interest. We are bullish on the stock from short-term perspective. We anticipate its move to sustain further and reach our price target of Rs 168 or Rs 175 in the forthcoming trading sessions. Short-term traders can buy the stock with stop-loss at Rs 160.
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