Buy Crompton Greaves for target of Rs 338: IIFL

MUMBAI: IIFL has advised to buy Crompton Greaves after the stock surged on impressive volumes in previous trade.

On the daily chart, Crompton Greaves has been moving in a bullish Price channel since July 2010. It is a continuation pattern that slopes up and is bound by an upper and lower trend line. The upper trend line marks resistance and the lower trend line resembles support.

The upper resistance line is drawn from last week of July 2010. The support line coincides with the support of its 20-DMA. Yesterday, the stock surged by around 3% accompanied with impressive volumes.

We recommend traders to buy the stock above Rs 318 with stop-loss of Rs 310 for target of Rs 338,” the report said.

Note: Trading idea valid for time-period of 1-3 days.