The outlook for the stock of Crompton Greaves Consumer Electricals is bullish. The stock has surged 3 per cent on Tuesday breaking above the key resistance level of ₹230. This keeps intact the uptrend that has been in place since October. The indicators on the charts are also positive. The 21-day moving average has crossed over the 100-day moving average. This is a positive signal indicating that the downside could be limited.
Immediate support is at ₹230 and then cluster of supports are poised in between ₹227 and ₹224. Dips to these support levels may find fresh buyers coming into the market. An upmove to ₹242 and ₹245 is likely in the near term. A strong break above ₹245 will then pave way for the next target of ₹250.
Traders can go long at current levels and also accumulate on dips at ₹231 and ₹229. Stop-loss can be placed at ₹227 for a target of ₹250. Revise the stop-loss higher to ₹238 as soon as the stock moves up to ₹242. The outlook will turn negative only if the stock breaks below ₹224 decisively. But such a strong downmove looks unlikely at the moment.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)