Crompton Greaves had fallen more than 25% on huge volumes in just 2 trading sessions from Rs. 242 on 18th July to Rs. 178 on account of poor quarterly numbers and seems to be technically oversold. The RSI indicator had fallen below 20 levels which suggest that there might be a bounce back in the counter any time soon.
JP Morgan is overweight on Crompton Greaves with a target of Rs 300 as they feel the topline disappointment was led by flat growth in overseas subsidiaries and just a 2% year on year growth in the consumer segment. They are maintaining their current estimates subject to further review.
Hence at InvestorZclub we believe that short term traders can enter the counter at Rs.176 - Rs. 178 for a possible target of Rs.190 in 2-3 trading sessions with a strict stop loss of Rs. 170.
Thanks Amit, I purchased at 175/- when you recommended and booked profit at 185/- today. Cheers !!!ReplyDelete