1) Crompton Greaves was up 5% yesterday, supported by some positive indicators, which makes it a buy recommendation.
2) Open Interest in the stock has gone up by 22% yesterday. Futures Open Interest went up by 15%.
3) Call / Put Ratio for Fresh Open Interest addition stands at 0.45. Gross Call / Put Ratio is above 1 (at 1.14). This means that we still have scope of further increase in Open Interest.
4) Volume based indicators are also positive. Trading Volume went up by close to 2.5 times of Monthly Average while Delivery Volume is also up by 2.7 times of its monthly average.
5) On technical charts, one may see that before making this move, the stock consolidated in 118-120 Rs range. (below given is 5 Day chart)
6) One may go long on declines, preferably around 123 where it stopped yesterday before making further up moves.
7) Where should be the stop-loss? It can be placed below 118 where we have seen consolidation happening.
8) And what should be my target price? The first target price can be placed at 133 where double tops were made during last up moves.
9) If the same is breached, then the next target arrives at 155 Rs where exists the three beautiful peaks.
Have a profitable trading!
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