Buy Crompton Greaves; target of Rs 260: Aditya Birla Money 14-07-2011

Aditya Birla Money is bullish on Crompton Greaves and has recommended buy rating on the stock with a target of Rs 260 in its July 14, 2011 research report.

“Crompton Greaves, with its recent fall from Rs 270 levels, Crompton Greaves is now testing its prior swing lows at 240 zones. An inside day pattern formed with yesterday’s price action indicates that downward momentum is weakening. Moreover with daily momentum oversold, it seems likely that the support at Rs 240 should once again hold. As long as the support at Rs 240 holds, the stock can once again bounce back towards Rs 255-260 levels. However a breach above immediate resistance at Rs 247 would be required to confirm the positivity.”

“It is important to note that in the larger picture Crompton Greaves is holding just above the neckline of probable Head and Shoulder. A close below Rs 240 would lead to breakdown from the pattern indicating negativity towards 200-180 levels. Buy Crompton Greaves above Rs 247 initially and then on dips to Rs 242 for a target of Rs 260 with stop placed below Rs 238 on closing basis,” says Aditya Birla Money research report.

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