Technical Analysis: Crompton Greaves Consumer Electricals, Inox Wind and Trent

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Crompton Greaves Consumer Electricals (₹392.25)

Confirms Head & Shoulder

The stock of Crompton Greaves Consumer Electricals, after marking a high of ₹483.65 in early September, has been on a steady downtrend. An attempt for a recovery a couple of weeks ago did not sustain. The scrip resumed the fall after facing a resistance at ₹450 and slipped below the support at ₹415 last week.

This price level happened to be the neck level of the head and shoulder pattern, which now stands confirmed. This chart set up hints at further decline. So, short the stock now at ₹392. Add shorts if the price rises to ₹415. Place stop-loss at ₹450. When the stock depreciates to ₹360, trail the stop-loss to ₹390. Move the stop-loss to ₹360 when the price hits ₹340. Exit at ₹320.

Inox Wind (₹203)

Finds a base

Inox Wind’s stock has been in a downtrend over the past month. It hit a record high of ₹262.1 last month.  Since then, it has been on a decline. But the scrip seems to have found the bottom as the 20-week moving average and a trendline support coincides at ₹196. Even if the support at ₹196 is breached, a drop below ₹180 is less likely.

We expect the stock to rebound around ₹200 or after seeing a decline to ₹180. Buy now at ₹203 and accumulate if the price dips to ₹180. Place stop-loss at ₹165. When the stock surpasses ₹230, revise the stop-loss to ₹200. When the price hits ₹245, tighten the stop-loss further to ₹225. Book profits at ₹260.

Trent (₹7,358.9)

Likely to rebound

The stock of Trent has been in a downtrend for nearly two weeks. It fell off the resistance at ₹8,340. However, from the current level, the stock has a support at ₹7,000. Just below that, ₹6,800 is another important base. Therefore, the price region of ₹6,800-7,000 is a support band. We expect the downside will be arrested by this base and the scrip could see a rebound.

The long-term bull trend can keep the positive bias alive. In the short term, the price is likely to retest ₹8,340. So, traders can buy at ₹7,350 and accumulate at ₹7,000. Place stop-loss at ₹6,700. When the stock touches ₹7,700, revise the stop-loss to ₹7,400. On a rally to ₹8,000, revise the stop-loss to ₹7,800. Exit at ₹8,300.