Today’s pick is [stockquote]CROMPGREAV[/stockquote]. The stock has seen a lot of ups and downs in the past one year. For the first half of the year, the stock was in a downtrend till it reached the 110 levels which is a strong support level for the stock. The stock recently touched the same levels, and has just started moving upwards. In the last three months, the stock moved 4% against 5% as that of Nifty’s.
Oscillators RSI and CMO are at currently at 47 and 13 are close to the over-sold territory.
MACD line has just cut signal line in a bullish manner, suggesting a near term bull run for the stock.
The long-term GMMA lines are very close to each other and are unable to suggest any direction. The short-term lines have just seen a reversal, giving out a bullish sign again for the near-term.
CROMPGREAV’s average correlation of 0.54 with the Nifty is positive. The stock will be able to replicate the movements of Nifty. [stockquote]NIFTYBEES[/stockquote]
CROMPGREAV has a historical volatility in the range of 0.4 to 0.9. The scrip’s volatility is currently in the lower end of the range and hence is not a concern.
Looking at these technicals a short-term buy is suggested. A longer-term call could be made after a decisive fanning out of the GMMA long-term lines or breaking of resistance at 140 levels.
