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The shares of Crompton Greaves Consumer Electricals gained 3.4 per cent with above average volume on Thursday, breaking above a key immediate resistance at ₹262. Investors with a short-term perspective can buy the stock at current levels. Since registering a 52-week low at ₹192 in February 2019, the stock has been in a long-term uptrend.
After a corrective decline, the stock took support at around ₹238 in early January and began to trend upwards. The 200-DMA too provided support. While trending up, the stock had decisively breached its 21- and 50-DMAs and currently trades well above them.
The recent rally has strengthened the bullish momentum. The daily relative strength index features in the bullish zone and the weekly RSI has re-entered the bullish zone from the neutral region. Moreover, the daily as well as the weekly price rate of change indicators hover in the positive terrain implying buying interest.
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The short-term outlook is bullish for the stock. It can extend the uptrend and hit the price targets of ₹278 and ₹284 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹261.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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