This stock jumped 10% in just 6 trading sessions! Do you own it?

The stock of CROMPTON has soared about 10% from its recent swing low of Rs 312 level.

The stock of Crompton Greaves Consumer Electricals Ltd has witnessed a good rally in the last few days, having gained about 10% in less than a week. It has jumped nearly 3% today and recorded good volumes during the initial hours of Friday’s trading session. With this, it has crossed above its 20-day exponential MA.

The stock is quite oversold considering that it has fallen about 40% from its lifetime high of Rs 512 level to test its pre-covid high at around Rs 300 level. However, the stock witnessed strong value-buying at this level as above-average volumes were recorded lately with a 10% price gain. Thus, this level shall act as a strong support level. After a sharp fall of about 18% from its prior swing high, the stock is gaining traction.

The technical parameters indicate improved strength in the stock. The 14-period daily RSI (49.84) has jumped sharply from its oversold counters. Interestingly the MACD has signalled a bullish crossover. The volumetric strength in also improving, as per the On Balance Volume (OBV). The Elder Impulse System has indicated a fresh buy. The Relative Strength (RS) has improved and is above the zero line, indicating an outperformance against the broader market. However, the stock is still down by about 8% from its 100-DMA and about 18% from its 200-DMA.

On a YTD basis, it has already fallen about 22%. Considering the above factors, the downside risk seems to be limited for the stock now. However, it needs to sustain above the level of Rs 350 for a short-term upside. It then can test the level of Rs 385, followed by Rs 400 in the medium term. Traders can include this stock in their watchlist to track its further development.

Crompton Greaves Consumer Electricals is in the business of consumer durables. With a market capitalisation of about Rs 21000 crore, it is one of the popular companies having a strong presence in its sector.