The stock of CreditAccess Grameen is on the uptrend since December last after taking support at ₹500. Though there were intermittent corrections, the stock managed to appreciate and rallied past the key hurdle at ₹820.
The up move is accompanied by above average volumes, hinting at a durable rally. , Indicators like the RSI and the MACD on the daily chart are also showing bullish signs. The scrip is most likely to extend the upswing in the forthcoming sessions. Even though the stock saw a minor dip on Wednesday, the overall bullish trend is intact and i is likely to rally towards ₹940.
Traders can initiate fresh longs at ₹897 with a stop-loss at ₹874. Liquidate the longs when it touches ₹938. However, restrain from trading, if the stock opens below ₹874 on Thursday. But, in the case of gap-up opening , wait for the stock to moderate to ₹897, and then go long.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)