Buy Crompton Greaves for target of Rs 350: IIFL

MUMBAI: IIFL is of the view that Crompton Greaves has signaled breakout from rising channel. The stock is headed for target of Rs 350, the report says.

“Crompton Greaves has signaled breakout from rising channel which has been persisting since last four months and managed to close above same despite weakness in broader markets.

Volumes spurt up with the price upmove indicating buying interest even at higher levels. On the upside immediate resistance is seen at levels of Rs 360 which should be tested without much effort in near term.

Resistance is derived from amplitude of wedge pattern which corresponds at Rs 30. RSI frequently bouncing back from Rs 50 levels also indicate inherent strength in the counter.

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